Kilmarnock admit that Steven Naismith is being adversely affected

Rangers manager Walter Smith said this week that the Glasgow outfit had dropped their interest after the two clubs could not agree a transfer fee.

Now the two Edinburgh clubs have stepped up their interest.

But Rangers remain the 20-year-old's favoured club and he might reject a proposed move to any of their rivals.

The Ibrox club have been chasing Naismith all summer, having four bids rejected before withdrawing their final offer of �1.5m.

Kilmarnock are thought to want upwards of �1.7m.

This will affect him because Steven is that type of person Kilmarnock manager Jim Jefferies

And manager Jim Jefferies is anticipating a fresh bid - but not from Rangers.

"There is a club who have not made an offer yet but made another enquiry," he said.

"Rangers haven't offered enough, it's as simple as that - and all their offers have been final offers!"

Celtic made inquiries about Naismith earlier in the summer but have not made a formal offer.

Hibs have already had an offer rejected for Naismith, but it seems unlikely they would be able to offer him the kind of wages that would persuade him to switch to Easter Road.

Hearts would have a better chance of rivalling Celtic and Rangers in terms of wages but have not yet made a formal bid.

And majority shareholder Vladimir Romanov would have to be prepared to pay a new club record transfer fee to secure Scotland's newest international cap.

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Naismith's agent, Andrew McCormick, has claimed that all the speculation has adversely affected his client.

And, after losing 3-1 to Nottingham Forest in a friendly at Rugby Park, Jefferies added: "We have never put Steven up for auction, but we are not holding him back.

"But this is not easy for him and I feel sorry for him at times.

"This will affect him because Steven is that type of person."

Three Grant Holt penalties, two conceded by Frazer Wright and one by David Lilley, had given Forest a comfortable lead before striker Colin Nish pulled a goal back in the second half.

However, Jefferies was unconcerned about the result, saying: "I thought we passed the ball about well out there and we had a couple of good chances to take the lead.

"But if we play that way at the start of the season then I'll be happy enough."