The Rumour Mill: Thursday's football news and transfer gossip

McFadden won't leave Ciy for free

Birmingham City are aware of Celtic's interest in Scotland striker James McFadden (above) and will demand a seven-figure sum for the player. McFadden is out of contract at newly relegated City but the club will invoke a clause in his old deal to trigger a further two years. (The Sun)

• Celtic chief executive Peter Lawwell has confirmed manager Neil Lennon will be given the funds for "two or three" key signings this summer. (Daily Record)

• Celtic have put a 6million price tag on midfielder Beram Kayal. Bolton are one of several Premier League clubs to have shown their interest in the Israeli playmaker. (Daily Mail)

• Celtic target Shane Long admits he is unsure of his next move, with interest from Neil Lennon as well as Premier League clubs Newcastle and Everton. (The Sun)

• Efrain Juarez's transfer from Celtic to Real Zaragoza is in doubt after the Spanish club aplied to go into administration. (The Sun)

McCoist to pursue Cuellar deal

Ally McCoist has promised to go after the signature of transfer target Carlos Cuellar after he returned empty-handed from a spying mission in Argentina. The Rangers manager said he would contact Aston Villa about the former Ibrox favourite when the Premier League club have resolved their managerial situation. (Daily Record)

• Bursaspor are preparing a new bid for Rangers defender Steven Whittaker. The Turkish club had a 450,000 offer flatly rejected by the SPL champions last week, but it is understood they may increase this to as much as 1million to land the Scotland international, who is a key part of McCoist's plans. (The Sun)

• Arsenal are set to insist that Kyle Bartley remains in London until close to the end of the transfer window so that Arsene Wenger can assess the defender. Rangers boss McCoist has made it clear he wants the 20-year-old back at Ibrox after his loan spell last season. (Daily Mail)

• St Etienne free agent Yohan Benalouane has been linked with Rangers. The 24-year-old defender, who was a target for Walter Smith a year ago, has been on loan in Italy with Cesena but is now out of contract. (Daily Mail)

Brown hits out at Rams

Craig Brown has criticised Derby County for signing Kilmarnock's Craig Bryson while they continue to stall on agreeing a compensation figure for Aberdeen striker Chris Maguire. Brown said he is "disappointed" the Championship club are reluctant to meet Aberdeen's 400,000 fee for the Scotland international, despite spending the same amount on a player he sees as inferior. (Daily Express)

Hibs return unlikely for O'Connor

Although former Hibernian striker Garry O'Connor has been training in sight of Easter Road, and message boards have been suggesting that he might be one of the two strikers Colin Calderwood is hoping to agree terms with, his agent Martin Reilly played down talk of a possible return to Hibs, with the Scotland cap's wage demands expected to be out of his old club's reach. (The Scotsman)

• Watford are considering a move for former Hibs striker Derek Riordan after selling Championship top scorer Danny Graham to Swansea for 3.5million. Hornets boss Malky Mackay is a fan of Riordan, whose contract at Easter Road expired earlier this month. (The Sun)

Regan calls for return to one league body

Stewart Regan has identified a return to a single league organisation as a crucial part of his ambitions to reform Scottish football from top to bottom. Buoyed by his overwhelming success in gaining approval for historic changes to the structures and governance of the Scottish Football Association on Tuesday, Regan is now calling for a merger of the Scottish Premier League and Scottish Football League. (The Scotsman)

IN BRIEF

• Former Dundee United midfielder Morgaro Gomis has rejected a move to Aberdeen, preferring a switch to England. (The Sun)

• Dunfermline are set to sign former St Mirren captain John Potter after he was surprisingly released by the Buddies. (Daily Express)

• Steven Pressley insists out-of-contract Falkirk striker Mark Stewart will return for pre-season training unless a club meets their compensation demands. (The Sun)

• Out-of-contract Airdrie United winger Gary Mackay-Steven hopes to join Dundee United after a trial period at Tannadice. (Daily Express)

• St Mirren are set to sign St Johnstone goalkeeper Graeme Smith today. (The Sun)

• Kilmarnock's out-of-contract goalkeeper Cammy Bell is a target for Danish side Aalborg. (The Sun)

• Former Rangers winger Chris Burke has joined Birmingham after failing to agree a new contract at Cardiff.

• Former St Mirren manager Gus McPherson has emerged as the favourite to take over at First Division Queen of the South after being interviewed for the job on Tuesday.

• Paul Hartley has made young Aberdeen keeper Scott Bain his first signing as manager of Alloa.

• Stenhousemuir have completed the signing of experienced defender Martyn Corrigan from Stirling.

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