RANGERS last night were on the verge of signing Paul Gascoigne, who

emerged from seven hours of talks in London which resolved his

compensation claim from Lazio, but when the Ibrox club looked up from

transfer business they discovered that they remain quite a distance from

their main goal, Champions' League football.

UEFA revealed their seedings list for next season's Champions' League

and the premier division champions were frozen out, while English

champions Blackburn Rovers were seeded sixth, even though they have no

European pedigree at all.

The rankings will be an extreme disappointment to the Ibrox side, who

failed to beat AEK Athens in last year's prelims, but who are still the

only British side to have actually played with the elite in the

Champions' League. Blackburn fell at the first hurdle of last season's

UEFA Cup competition -- they lost to part-time side Trelleborgs -- but

are favoured by a system based on the size of a club's potential

television viewing audience.

The more cynical have always known England's champions would be seeded

because they have a large TV audience -- the most potent factor in

modern day football.

Indeed, all of the top eight seeds, the new defending champions Ajax

apart, represent countries with large populations. The Dutch club are in

as defending champions followed by Juventus, Nantes, Werder Bremen or

Borussia Dortmund, Real Madrid, Blackburn, Porto, and Spartak Moscow.

In the past clubs were able to take their own co-efficient -- points

earned through European appearances -- or that of their national

associations, depending on which was the higher. However, for next

season UEFA seem to be insisting that only the national co-efficients

will count, but any system which would have excluded Ajax had they not

beaten AC Milan in last night's European Cup final can only be regarded

as suspect.

Rangers can console themselves and galvanise their effort to win

through the August prelims and reach the Champions' League by completing

the signing of Gascoigne now that he has settled with Lazio. ''The

Gascoigne era with Lazio is over,'' said a spokesman for the Italian

club who have agreed a #4.5m fee with Rangers.

The 27-year-old is being pursued by Chelsea, Aston Villa, and Leeds

United, but Rangers chairman David Murray insisted yesterday that

Gascoigne would be signing for Rangers, and it seems he will do so

within a day or so after one or two more minor details have been

finalised.