Rangers: Steven Davis return deal '˜agreed in principle'

It is understood that talks will continue to establish if the switch from Southampton is a loan deal or permanent transfer.

The 34-year-old has found appearances limited this season at the Saints and reports indicate the Premier League club stand open to Davis’ January exit.

Davis’ contract at Southampton is due to expire this summer.

He previously made 152 appearances for Rangers between 2008 and 2012.

Davis’ international team-mate Gareth McAuley has previously gone on record to welcome the former Rangers captain joining him in Glasgow blue.

“I don’t know if it’s on the cards, but he’s certainly the player who has been here before, who has captained the club and knows what it’s about,” said McAuley in December. “He’s a top player and a great guy.

“Could he provide the creativity we need? Possibly, possibly.

“I know he’s frustrated that he’s not playing football and, if the opportunity is there for him and things are right with Southampton, then I’m sure he’d love to (come back).

“It’s an amazing club. I can’t think of anywhere better to play.”