Report: Celtic consider £500,000 bid for Scott Allan, Rangers also interested

Celtic are reportedly pursuing Hibernian midfielder Scott Allan.

According to The Scottish Sun, Celtic have been scouting Hibernian midfielder Scott Allan - and could make a £500,000 bid to sign him this summer.

The Bhoys have already made one summer signing in Manchester City defender Dedryck Boyata, but now manager Ronny Deila needs other reinforcements ahead of the Champions League qualifiers.

Adding another midfielder as cover for the likes of Scott Brown, Nir Bitton and Stefan Johansen could be a wise move from Deila - and it seems that he already has a target in mind.

The Sun believe that Hibernian midfielder Allen, 23, has been watched by Celtic for some time, with the Bhoys admiring his play since he joined Hibs almost a year ago.

Having struggled to make an impact with West Bromwich Albion after his 2010 move from Dundee United, Allan returned to Scotland last summer, and played a key role as Alan Stubbs guided Hibs to the Scottish Championship play-offs, only to be beaten by Rangers.

The Sun report that Celtic are lining up a £500,000 bid to sign Allan this summer, and with his contract set to expire in a year's time, that could be enough to prise him away from Easter Road.

The report also states that Rangers are interested in signing the Glasgow-born midfielder, with new manager Mark Warburton looking to re-shape his squad at Ibrox.

Can Rangers still compete with Celtic?

Since Rangers' financial problems hit them, they have been playing in the lower leagues of Scotland whilst Celtic win the title year-on-year without any competition.

Having missed out on promotion in the play-offs, Rangers must now face another season in the Scottish Championship - but could now try to take on their Old Firm rivals for Allan's signature.

It seems a daunting task considering that Celtic are competing in the Champions League this summer, but the lure of more first-team football at Ibrox could at least play into Allan's thinking if both clubs do pursue him this summer; though it would certainly be a surprise if he chose Rangers over Celtic right now.

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