Rangers last night edged a step closer to landing Steven Davis on a permanent deal after making another bid for the Northern Ireland star, believed to be in the region of £3.5 million.

The Scottish giants have been favourites to sign the 23-year old since January after Davis enjoyed a hugely successful loan spell north of the border which included a UEFA Cup final appearance.

But the summer-long transfer saga could yet run into next month with Fulham still insisting they want the £4million they paid Aston Villa for Davis a year ago.

Ibrox boss Walter Smith revealed last week that they were unable to meet Fulham’s asking price but the Belfast Telegraph understands negotiations have continued between both clubs in the past seven days and both parties are keen to conclude the deal.

But with the Teddy Bears reluctant to splash more cash then they deem appropriate, Blackburn Rovers could nip in and steal their target.

New Blackburn chief Paul Ince is a known admirer of the Cullybackey man but with prize assets David Bentley and Roque Santa Cruz still at the Ewood Park club, he has been unable to flex his muscles in the transfer market thus far this summer.

Davis fits the bill for Ince but no firm offer will be discussed until Bentley or Santa Cruz leave the club.

Rangers are still hoping a cut price £3.5 million deal will be accepted by Craven Cottage boss Roy Hodgson as he aims to free up funds for a raid on Everton and England striker Andrew Johnson.

It is believed Fulham are considering Rangers’ latest offer but personal terms have yet to be discussed by either party.

Reports in Glasgow yesterday afternoon indicated a deal was imminent with Rangers keen to sign Davis in time to register him for the beginning of their Champions League campaign but that now appears unlikely.

Davis didn’t travel to Fulham’s

pre-season tour of South Korea this week but the Londoners insist they would still be happy for him to remain at the club.

Meanwhile, David Healy’s future at Fulham has also been thrown into doubt with the Cottagers poised to sign Andrew Johnson.

The Northern Ireland striker has consistently maintained his wish to stay with the Barclays Premier League side after helping them avoid relegation last season.

However, with Bobby Zamora already added to the front line this summer, Healy could fall further down the pecking order if Johnson signs in an £11 million deal.