Walter Smith could carry on with no contract next season

• Picture: SNS

But while the news might be welcomed by Rangers fans, the circumstances which could see Smith continue in the manager's role at Ibrox will be viewed as unpalatable by those with the club at heart. Included in this number is Smith himself.

The manager is concerned by the lack of progress on the buy-out front and believes time is short if Rangers are to prepare properly for what seems certain to be a Champions League campaign next season. "Everybody has to know where the club is going and that's why, right at this time, I feel there's an element of pressure," said Smith, whose side will take another big step to the title with a win over Aberdeen at Ibrox tonight. "Everybody should be starting to feel that bit of pressure."

The strain is off in terms of the league, where Rangers' worst enemy at the moment is themselves. But Smith noted that nothing had changed on the financial side of things, despite recent talk of a possible takeover by London-based businessman Andrew Ellis and even a buy-out by the fans. It leaves players and manager in limbo and Smith admitted that the current situation where he is operating without a contract could continue into next season.

"I suppose it is," he said, upon being asked whether it was possible whether a new campaign might begin with him still in charge – and still working on a week-to-week basis. "I wouldn't like to see it happening. But I don't look at it from my point of view, I look at it from the club's point of view. It's not a situation that you would want to happen. If we can get a buyer and Sir David (Murray] is happy to let the place go, then that's fine."

Smith and his team of Ally McCoist, Kenny McDowall and Ian Durrant are content to continue on as normal in what they can see are difficult times for the club. "We have made it quite clear that we will work until things are clarified, so that's what we will probably end up doing," he said.

Smith has already stated that he fears for the club if a new buyer is not found in the weeks and months ahead. A contingency plan is in place should such a scenario occur but it is not one consistent with a side about to step onto the Champions League stage. Instead, it is a proposal dominated by further financial cut-backs. Rangers will also not be permitted to add to the squad.

"There is a plan in place," confirmed Smith. "It's not a plan I would like to see carried out but it's there, so we know exactly what we would be doing in the summer. Nothing."

But the manager appears ready to hold the fort for as long as it takes for Rangers to be placed on a firmer financial footing. Until then, there can be no clarity on anyone's future, least of all Smith's.

"That's exactly the problem we've got," said Smith. "A whole load of things are needing to be adjusted to at the present moment and we're not quite sure exactly what's going to happen. That's just the way it is.

"My own situation is dependent on who takes over, if someone takes over," he continued. "These are the circumstances, they haven't changed. If we don't get a buyer then we all have to sit down and say 'well, what are we going to do'."