(CNN) -- Rangers are poised to sign Kyle Lafferty from English Championship side Burnley in a deal worth in excess of £3 million ($6 million), continuing their summer spending spree.
Northern Ireland striker Lafferty becomes the latest player to join Glasgow Rangers this summer.
The 20-year-old Northern Ireland striker had also been interesting Glasgow rivals Celtic, however Rangers are on the brink of making Lafferty their third striker signing of the summer, after securing deals for Kenny Miller and Andrius Velicka.
They will pay an initial £3 million, then a further £250,000 based on appearances, with forward Alan Gow moving to Burnley as part of the deal.
Burnley manager Owen Coyle said: "We have received a very good offer from Rangers -- a deal worth close to £4million when you include Alan Gow, who has been offered to us in return as part of the package.
"Ultimately, from the fans' point of view, Kyle wanted to leave the club after saying he felt it was time to move on."
The signing of Lafferty will take Rangers' summer spending above the £6 million mark and his arrival inevitably casts further doubts over the futures of the strikers who helped Rangers clinch a Scottish cup double and a place in the UEFA Cup final last season.
Kris Boyd, Daniel Cousin, Jean-Claude Darcheville and Nacho Novo were alternated in manager Walter Smith's side last season. They all reached double figures in the goalscoring chart but Rangers will not want to have a squad overloaded with strikers for the new season.
Meanwhile, Australian international striker Scott McDonald has signed a new five-year contract with Scottish champions Celtic.
McDonald, 24, enjoyed a superb debut season at Parkhead and finished as top scorer in the Scottish Premier League with 25 goals.
The former Motherwell player's prolific form helped Gordon Strachan's side snatch the title from Rangers and reach the last 16 of the Champions League.
Celtic chief executive Peter Lawwell said: "It is well known that Scott loves playing for Celtic and he has a great affection for the club. He is also someone who performed brilliantly for Celtic last season.
"Our priority is always to keep our best and most committed players and the board is delighted to support Gordon in his plans for the future by securing Scott on this long-term agreement."