Redknapp's comments appear to kill off Rangers' chances of signing Pedro Mendes with Muntari reportedly bringing Pompey £12.7million as the 23-year-old Ghanaian joins Jose Mourinho at Inter.

Redknapp told the Daily Record: "I did speak to Walter about a couple of players and he said he liked Mendes. I think his wages might have been an issue for Rangers but the biggest problem is that with Muntari going I will need Pedro in my team."

He added: "Because of the Muntari deal I don't need to sell anyone else so it would take a big offer for me to consider letting Pedro go."

Thursday night's Champions League transfer deadline passed without Rangers adding a midfielder to their squad, meaning they will go into next week's second qualifying round first leg against Kaunas with their current squad.

They are still hopeful of signing Fulham midfielder Steven Davis, who was left behind as his club travelled on a pre-season tour of South Korea, but only if the Cottagers drop their £4million asking price.

Smith has also been linked with Sunderland midfielder Dickson Etuhu.