According to The Sun, the 24-year-old defender will cost about £5 million in transfer fee.
The Scotland international has been on the books of Blackburn his entire professional career so far and has a contract with the Championship club until June 2018, according to Transfermarkt.co.uk.
Back in March, The Times claimed that Rangers manager Mark Warburton wants to add Hanley to his squad.
Rangers’ interest might have cooled down now, though, as the Scottish Premiership-bound side have recently signed defender Clint Hill on a free transfer.
Hanley scored two goals and created 12 chances in 44 Championship appearances for Blackburn last season.
The defender had a pass accuracy of 69% and a shot accuracy of 29%, and won 206 headers, 13 dribbles and 63 tackles.