The Rangers academy product has reportedly asked to leave Ibrox, where a new era has begun under Steven Gerrard.
The report claims Kelly is set to rejoin Livingston on a two-year deal - despite Rangers wanting to keep him at Ibrox.
A product of the Gers' academy system, Kelly helped Livi to promotion back to the Scottish Premiership during a loan spell last season.
But the 22-year-old risks being demoted to fourth choice at Ibrox after last month's arrival Allan McGregor, who also has Wes Foderingham and Jak Alnwick for company.
And it is claimed he has asked Rangers chiefs to let him leave, prompting interest from Dundee United and two clubs in England - although he appears to be bound for the Tony Macaroni Arena.
This is what the Gers faithful are saying...
Would be sorry to see Liam Kelly leave but with Robby McCrorie recently signing a long term deal & with McGregor, Foderingham & Alnwick ahead of him you can't really argue with him looking to leave.— Willy (@SpatestonBear2) 6 June 2018
Personally would have kept Kelly as back up to McGregor. Would also like to see Robby McCrorie going out on loan to championship club.— Dave (@dm1872_) 6 June 2018
He's at an age now where he needs to be playing. Can't see Mcgregor, Fod and Alnwick all being at the club at the start of the season either.— TPW2 (@NewcoTPW) 6 June 2018
He’s too good for third choice and needs to play, should’ve been given the chance in Championship imo. He will have a good career no doubts.— Gavin Kelly (@gmkelly1979) 6 June 2018
I’d get rid of Wes and keep Ainwick— Craig Pringle (@craigpringle91) 6 June 2018
We should have first buy back option— Jordan Tait (@JordyT8) 6 June 2018
Actually gutted about that. He seems like a good talent. Hopefully we have a buy back clause or something!— Ian Hunter (@kirkwood_hunter) 6 June 2018
Sort of disappointed have waited so long to see him get a chance but that’s a decent move hope he keeps them up— Angus McProdman (@Rangersangus72) 6 June 2018
@cf5loyal: @RangersCulture ******* great keeper a player rangers will get karma for let going
I saw a clip of Kelly recently on Rangers social media. He is a great shot stopper. At the age where can't be back up any longer. McGregor started to play for Rangers about similar age I think. Keeps Livi up with strong performances then can move onto better things. Good luck!— Barrie (@twowordsbaz) 6 June 2018
What's this about Liam Kelly leaving? He should've been in goal for rangers since the day he returned from Livingston, instead we had the worst keeper in the top 6!— Jim Hoy (@JimHoy1351) 6 June 2018
Another Rangers goalkeeper, Robby McCrorie, is set to join Ayr United on loan, according to the Scottish Sun.
Would Rangers be making a mistake allowing Kelly to leave?