Gilliead's contract at St. James’ Park has expired, and Rangers have been alerted to his availability now.
Newcastle have been unable to agree a new deal with the 22-year-old, and Steven Gerrard is now said to want to bring the winger to Ibrox.
The Rangers boss can sign Gilliead for free this summer, as Newcastle did not even offer him a contract, so the Scottish side will not even need to pay compensation.
Rangers are said to have to compete with a whole host of clubs for Gilliead, with Championship and League One teams from England also keen.
Rangers have already been extremely active in the transfer window so far, with Gerrard bringing in a clutch of new signings.
Rangers are currently training ahead of their Europa League tie with Shkupi on 12th August.