Liverpool legend Steven Gerrard's prospects of returning to manage Rangers appear to have taken a significant setback, as reports suggest the Scottish club is on the verge of appointing Davide Ancelotti—son of iconic manager Carlo Ancelotti—as their new head coach.

Rangers have been actively seeking a permanent replacement for Philippe Clement, and it now seems they may have found their preferred candidate in Real Madrid assistant coach Davide Ancelotti. Davide has served alongside his father in each of his past four managerial positions.

According to the Spanish publication AS, the deal is said to be ‘almost certain’, with Rangers' new ownership keen to introduce a fresh face in the dugout. Francesco Mauri, a key figure in Carlo Ancelotti’s coaching set-up, is also expected to follow Davide to Ibrox.

It is understood that Davide Ancelotti will remain with the Brazilian national team as assistant to his father during their fixtures against Ecuador and Paraguay in early June, before making the move to Glasgow to commence pre-season preparations.

Steven Gerrard had reportedly been under consideration for a possible return to Rangers, where he launched his managerial career. The former Liverpool captain guided the club to their first Scottish Premiership title since 2011 during his third season in charge.

Gerrard departed Ibrox midway through the following campaign to take up the managerial role at Aston Villa. Although he did not see out the season, the squad he had assembled went on to reach the UEFA Europa League final months after his exit.

Despite a promising start at Villa Park, Gerrard’s time in the Premier League proved short-lived, as he was dismissed less than a year into his tenure.

He subsequently took up a managerial role in Saudi Arabia with Al Ettifaq. However, his spell in the Saudi Pro League came to an end in January, with the club sitting 12th in the table—just five points above the relegation zone.

Since Clement’s departure in February, Rangers have been under the temporary stewardship of Barry Ferguson. In his 13 matches at the helm, Ferguson has overseen five victories.

The Telegraph previously reported that Rangers had drawn up an extensive list of managerial candidates. Former Wolverhampton Wanderers boss Gary O’Neil was believed to be among the contenders.

Other reported names included former Luton Town manager Rob Edwards and Russell Martin—who enjoyed a stint as a Rangers player and has since managed MK Dons, Swansea City, and currently Southampton.