CELTIC AND RANGERS could battle for the signature of out of contract Sunderland striker Danny Graham. 

The forward's deal runs out at the end of June and he looks set to leave the Premier League club after spending the second half of last season out on loan.

The Sunderland Echo has reported that both Old Firm clubs are chasing Graham, but they face competition from English Championship sides.

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HeraldScotland: Danny Graham

The striker worked with Gers manager Mark Warburton at Watford as well as new Hoops boss Brendan Rodgers while at the Hornets and Swansea City. 

The 30-year-old scored seven goals in 18 appearances for Blackburn Rovers while on loan this season, but his return for the Black Cats is a meagre one strike in 32 outings.

Graham is also being tracked by the likes of Wigan Athletic, Preston North End and Birmingham City, according to the newspaper.

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