Wigan Athletic have accepted an undisclosed offer from Rangers for Rob Kiernan after Birmingham City withdraw their bid for the defender.
BBC WM understands the English Championship club had issues with the 24-year-old's medical.
The former Republic of Ireland Under-21 international played 12 times for Blues on loan at the end of the season.
Birmingham then agreed an undisclosed fee to sign Kiernan on a two-year deal, but he is now talking to Rangers.
He could become former Brentford manager Mark Warburton's first signing since taking over at Ibrox.
Kiernan played under Warburton during a loan spell at Griffin Park.
Warburton was also youth coach at Watford when Kiernan was converted from central midfield to centre-back.
|Rob Kiernan's many clubs|
|Birmingham City became Rob Kiernan's 11th different club when he signed on loan in February. Apart from his time at Watford and Wigan Athletic, he has also been out on loan with Kilmarnock, Yeovil Town, Bradford City (twice) Wycombe Wanderers, Accrington Stanley, Burton Albion, Brentford and Southend United.|
Kiernan, born in Rickmansworth, started with his hometown club before signing for Wigan in June 2011.
He played four times for Kilmarnock in the Scottish top flight on loan from Watford and also had spells with Yeovil Town, Bradford City and Wycombe Wanderers.
While with Wigan, he was also farmed out to Accrington Stanley, Burton Albion - where he was signed by current Birmingham boss Gary Rowett - and Southend United.
Wigan, relegated twice in three years, released five players at the end of 2014-15 after finishing 23rd in the Championship.
They also expect to sell winger James McClean to West Brom for £1.5m and have also lost goalkeeper Scott Carson to Derby County.
However, they have brought in Walsall goalkeeper Richard O'Donnell, Blackpool midfielder David Perkins and Rotherham United defender Craig Morgan.