NIKOLA KATIC will return to Rangers this summer after Hadjuk Split pulled out of a deal to sign the defender at the end of his loan stint in Croatia.

Katic returned to his homeland last term and spent the campaign with Split after failing to win back his place in Steven Gerrard's squad upon his return to fitness.

The 25-year-old was a £2million signing from Slaven Belupo during Gerrard's first season in charge but a knee injury ruled him out of Rangers' title winning campaign as league flag 55 was won.

Ibrox boss Giovanni van Bronckhorst has already added John Souttar to his defensive ranks ahead of the new season and the former Hearts star is set to partner Connor Goldson this term.

And with Calvin Bassey and Filip Helander, as well as rising star Leon King, also key parts of the squad, it appears that Katic will have no long-term future in Glasgow as he considers his next move.

Hadjuk had first option to make the loan switch permanent this summer but Sporting Director Mindaugas Nikoličius has revealed that an agreement will not be struck if Rangers stick to their current valuation of the former international stopper.

He said: "Katic is no longer with us, the compensation clause that the Rangers insist on is too big for now, he is returning to Scotland for now.

"This is not realistic to realize so far, we cannot enter into negotiations.

"We could not reach an agreement with Ferro and he is returning to Benfica, it is over with him.

"We are looking for targeted reinforcements. Our biggest advantage is that we now have the skeleton of the team, good energy in the lineup.

"It is not a problem for us to find a player, but we are looking for him to fit into the team we already have."