RANGERS legend Barry Ferguson has tipped Rangers to complete a 'cut-price' transfer deal for John Souttar to head to Ibrox this month.

The Hearts defender agreed a pre-contract deal at Ibrox for the summer after his Tynecastle terms come to an end.

But Ferguson has claimed his former club could bring the deal forward with a transfer bid this month of around £250,000.

Hearts have been firm in their stance on an early exit demanding a "significant" fee reported to be around £500k for an early switch.

However, Ferguson reckons Rangers are in the "driving seat" and could force a transfer for a majorly reduced fee.

Speaking on Go Radio, the current Alloa boss said: "I do think Gio will want to bring in one or two players. Itten's come back in because Jermain Defoe has left the club.

"It depends on what kind of money he has available or if he can bring John Souttar in.

“I think that’s a real possibility now that it’s been released that John Souttar has agreed to come to Rangers.

"It might be difficult for John Souttar at Hearts now.

"I know the fans are disappointed so I think that Rangers are in the driving seat and maybe they can go and do a cut-price deal.

“Hearts were looking for half-a-million pounds if he was to go in the January window.

"Now I think you could be looking at half of that. You've now got a player that’s agreed to go; is his heart going to be in it?

“I think John Souttar is a real professional and he’ll always give 100 per cent for Hearts, but that becomes a difficult situation for a player and I don’t know how it's going to operate.

“I think Rangers will try to do that deal. I know Gio said they won’t try and do it but I think there’s something behind that to try and get him.

“For me, Hearts are in pole position to get into Europe. They’ve had a fantastic season so far and Robbie will obviously want to keep his best players.

“But at the end of the day, John Souttar’s mind might be elsewhere."