Alan Gow is holding talks with Wolves after Rangers confirmed a six-figure fee has been agreed for the winger.
Skysports.com revealed on Sunday that the Scot was closing on a move to Molineux after spending the first half of the season on loan at Blackpool.
Though Blackpool had been keen on a permanent deal, Gow could finalise a switch to promotion hopefuls Wolves later this week.
Rangers boss Walter Smith expects the 26-year-old to link up with Wolves and believes it will be a good move for Gow.
"The clubs have agreed a fee for the player and Alan and his representatives have gone to speak to Wolves today," Smith told the club's official website.
"As long as they reach agreement, the move will be finalised in due course but they have to talk first.
"Mick McCarthy has done a terrific job down there. Last season was disappointing for them, but they've settled down this year.
"After missing out on a promotion place, they're doing well and look to be the favourites to go up to the Premiership as they've got a fair gap at the top of the league now.
"I don't want to pre-empt anything, but it certainly looks as though they'll get promotion and Alan has an opportunity to join a club on the up. It would be a good move for him."

Latest Sky Sports News Report
Hull 2-1 Stoke - Horton
Hull 2-1 Stoke - Pulis
Hull 2-1 Stoke - Bullard
Tottenham v Sunderland - 2nd Half
Blackburn v Portsmouth - 1st Half
Man City v Burnley - 1st Half
Blackburn v Portsmouth - 2nd Half
| Time | Fixture |
|---|---|
| Sunday 8th November | |
| Barclays Premier League | |
| 13:30 | Hull vs Stoke |
| 15:00 | West Ham vs Everton |
| 15:00 | Wigan vs Fulham |
| 16:00 | Chelsea vs Man Utd |
| Monday 9th November | |
| Barclays Premier League | |
| 20:00 | Liverpool vs Birmingham |
| Saturday 21st November | |
| Barclays Premier League | |
| 12:45 | Liverpool vs Man City |
| 15:00 | Birmingham vs Fulham |
| 15:00 | Burnley vs Aston Villa |
| 15:00 | Chelsea vs Wolverhampton |
| 15:00 | Hull vs West Ham |
| 15:00 | Sunderland vs Arsenal |
| 17:30 | Man Utd vs Everton |
| Sunday 22nd November | |
| Barclays Premier League | |
| 13:30 | Bolton vs Blackburn |
| 15:00 | Tottenham vs Wigan |
| 16:00 | Stoke vs Portsmouth |
| Wednesday 25th November | |
| Barclays Premier League | |
| 19:45 | Hull vs Everton |
| 20:00 | Fulham vs Blackburn |
| Saturday 28th November | |
| Barclays Premier League | |
| 15:00 | Blackburn vs Stoke |
| 15:00 | Fulham vs Bolton |
| 15:00 | Man City vs Hull |
| Time | Result |
|---|---|
| Saturday 7th November | |
| Barclays Premier League | |
| Wolverhampton 1 - 4 Arsenal | |
| Man City 3 - 3 Burnley | |
| Tottenham 2 - 0 Sunderland | |
| Blackburn 3 - 1 Portsmouth | |
| Aston Villa 5 - 1 Bolton | |
| Wednesday 4th November | |
| Barclays Premier League | |
| West Ham 2 - 1 Aston Villa | |
| Sunday 1st November | |
| Barclays Premier League | |
| Birmingham 0 - 0 Man City | |
| Saturday 31st October | |
| Barclays Premier League | |
| Man Utd 2 - 0 Blackburn | |
| Sunderland 2 - 2 West Ham | |
| Portsmouth 4 - 0 Wigan | |
| Bolton 0 - 4 Chelsea | |
| Stoke 2 - 2 Wolverhampton | |
| Fulham 3 - 1 Liverpool | |
| Burnley 2 - 0 Hull | |
| Everton 1 - 1 Aston Villa | |
| Arsenal 3 - 0 Tottenham | |
| Sunday 25th October | |
| Barclays Premier League | |
| West Ham 2 - 2 Arsenal | |
| Man City 2 - 2 Fulham | |
| Liverpool 2 - 0 Man Utd | |
| Bolton 3 - 2 Everton | |
Join skysports.com football editor Mark Buckingham from 6pm to debate the outcome of Chelsea v Man Utd.
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