Stalemate in Rangers takeover talks as deal drags on into a new week

To date, and despite talks having lasted for five months, Whyte has not been able to agree a deal with Murray for his majority shareholding in the Ibrox club. However, the source indicated there remained "goodwill on both sides", despite various deadlines having come and gone within the last six days.

What were described as "minor issues" remain sticking points, with the deal unlikely to go through until the middle of next week at the earliest.

Whyte is continuing to observe stock exchange rules which forbid him speaking publicly about the proposed takeover, but the source claimed the delay in concluding the negotiations is partly due to the Scottish businessman's desire to increase the amount of money he can give to the next Rangers manager, Ally McCoist, ahead of next season.

One of Whyte's promises has been to provide Rangers with 25 million over five seasons - 5 million per year - towards strengthening the playing squad. Rangers chairman Alastair Johnston has, however, stressed that more than 5 million is required by McCoist to re-build the team this summer. Due to continued financial restrictions imposed upon the present regime, manager Walter Smith has been forced to deal in the loan signing and free agent market. His selection worries were highlighted last weekend when he was able to name just five substitutes on the bench for the defeat to Dundee United.

Johnston believes substantial investment is required if Rangers are to remain in contention for the Scottish Premier League title next season, and this is something Whyte accepts. The source close to the deal told The Scotsman that the businessman plans to make available "significantly more" than 5 million when McCoist succeeds Smith in the summer.

"Craig Whyte is determined to get the right deal for Rangers, for Ally McCoist, for the players and especially for the Rangers fans, who have been waiting impatiently", said the source. "This is one of the reasons why the whole thing is taking such a long time.

"Craig Whyte's guiding principle from the start has been to make sure that as much of the money that has been allocated to this proposed takeover goes into the footballing side of things."

There is, the source emphasised, desire on the part of both parties to get the deal done, with talks continuing over the weekend and then into next week. However, another week has passed without a deal being struck, despite indications that it would be completed as early as the start of this week.Whyte officially announced his intention to make a bid Murray's controlling stake in November and completed his due diligence almost two weeks ago.

A potential complication to the deal emerged last Friday when the club's interim financial figures revealed a one-off payment of 2.8 million to HM Revenue and Customs. The liability from "player compensation schemes" from 1999-2003 initially came as a surprise to the Rangers board, and to Whyte too, and there was no certainty over who would foot the bill. The issue is separate to an ongoing tax investigation which Johnston admitted could leave Rangers with a bill they cannot afford to pay.

However, it is believed there are no major issues outstanding in the proposed takeover deal, although the source described the negotiations as being "hugely complicated", with lawyers and advisors having run up thousands of man-hours already.

Pressed on the subject yesterday prior to tomorrow's league clash at Hamilton Academical, Walter Smith said there was "nothing there" to report. The Ibrox side currently trail league leaders Celtic by two points.