Malik Tillman won’t be joining Rangers on a permanent transfer this summer but the club are in line for a multi-million-pound windfall. 

The Rangers Review can confirm that Bayern Munich have cancelled the option-to-buy clause that was inserted in the deal to bring the 21-year-old to Ibrox on loan last summer. 

However, Rangers will be compensated for the German club's decision with a £1 million cancellation fee.

As part of the cancellation clause, Rangers will also be entitled to 10% of the fee Bayern receive from selling Tillman this summer. 

The USA international is attracting serious interest from England, Germany and Italy with the expectation that he will be sold for a fee in excess of £10million. 

Brighton and Brentford are monitoring Tillman’s situation while there are potential suitors from the Bundesliga, with one Serie A club having expressed an interest recently. 

If Tillman’s sale proceeds, as expected, then Rangers are in line to net over £2m from Bayern due to their decision to terminate the option-to-buy clause. 

READ MORE: Rangers Lyndon Dykes and Charlie Cresswell stance revealed

The cancellation clauses were inserted into the deal to bring Tillman to Ibrox last summer by Ross Wilson to protect Rangers as there was an expectation that he could flourish in Scotland and Bayern would want to sell for a higher fee.

The Rangers Review understands the buy-clause to sign Tillman permanently was for £5.8 million and Bayern had the first option to buy-back at around £9 million. 

There was a general consensus amongst senior sources at Rangers last summer that Tillman was unlikely to be developed at the club over a number of years, to eventually be sold on for a huge transfer fee. 

The attacking midfielder was viewed as an exceptionally talented youngster, who was signed to improve Rangers immediately with the knowledge that Bayern would reward them handsomely if a permanent move never materialised.

Michael Beale enjoyed an extremely positive relationship with Tillman and the player thoroughly enjoyed his time in Glasgow. 

Tillman picked up the PFA Young Player of the Year award after being recognised by his peers for his performances. 

The midfielder registered 12 goals and five assists across 43 appearances for Rangers.