Steven Gerrard is expected to continue talks with Rangers this week, with the club set to make an announcement on Graeme Murty's future.
Negotiations are to continue between the club and Gerrard's party in the aftermath of Rangers' 5-0 defeat to bitter rivals Celtic, Sky Sports News understands.
Any potential agreement would see Gerrard take over his first senior position as a first team manager since retiring from the game.
Should Gerrard take up the post, it is expected his former Liverpool team-mate Gary McAllister will join him as assistant manager.
Interim boss Murty remains in place despite Sunday's loss at Celtic Park, though it is now unclear if he will remain in the dugout for Saturday's home fixture against Kilmarnock.
Murty did not address the media following the defeat, which saw Celtic pick up their seventh consecutive Scottish Premiership title.
Rangers have so far been unable to give confirmation on whether Murty will remain in charge though Sky Sports News understands the 43-year-old will address the media later in the week, with his immediate future likely to be clarified within the next 24 hours.
Murty had admitted to Sky Sports prior to kick-off at Celtic Park that speculation surrounding links to Gerrard and the managerial position had affected preparations for Sunday's crunch fixture.