The St Etienne stopper – who is valued at £2.5million – is high on manager Walter Smith’s hitlist and is seen as a more than ready-made replacement for rookie Danny Wilson, who moved to Liverpool earlier in the week.
The Ibrox side will face tough competition from Newcastle, West Ham and Sevilla, who have all been monitoring the progress of the 23-year-old.
Benalouane who is of Tunisian descent, is out of contract at the end of next season and while his French club want him to sign an extension they are ready to cash in now rather than lose him for nothing in 12 months’ time.
A regular for St Etienne, 6ft 1in Benalouane figured in 40 games last season, including nine in the Europa League.
The player has told friends that he would welcome a move to the Premier League in England or a big Scottish club involved in the Champions League to further his international ambitions.
Last night Rangers boss Walter Smith confi rmed he was aware of the French star, adding: “We are doing our best to source and sign new players before the start of the season and Benalouane is one who has been brought to our attention.”
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