Rangers end Naismith bid

The 20-year-old is valued at £2 million by Kilmarnock but Rangers are only willing to spend £1.5 million, including add-ons.

"We have withdrawn the offer," Walter Smith said. "I can't make it clearer than that.

"We can't come to agreement with Kilmarnock, so that's it finished."

Naismith has also been interesting Old Firm rivals Celtic along with several Premiership clubs, although the player hismelf has ruled out a move south of the border at this early stage in his career.

Killie boss Jim Jeffries had claimed that the clubs were about to strike a deal for Naismith after verbal discussions, but the assurances have not reulted in a renewed bid and Rangers have moved away from the table.

"It hasn't resulted in anything concrete," Killie chairman Michael Johnston told BBC Sport.

"Rangers have improved the terms under which payment would be made, but there is still a fair gulf between our valuations.

"Meantime, we have had a higher offer from another major club, but nobody has offered what we are looking for."

The other club is understood to be Celtic.