McDonald had hoped to clinch a move to Rangers

Reports suggest that the Fir Park club rejected a �400,000 offer for the 23-year-old Australian, who has 18 months of his contract to run.

"When my agent called to tell me what was happening, I was on top of the world," McDonald told the Daily Record.

"It's so hard for me to take. But it's up to Motherwell to call the shots. Hopefully, I can get over this."

Earlier, Motherwell had reluctantly agreed to sell top scorer Richie Foran to Southend in a �200,000 deal.

But manager Maurice Malpas could not face parting with McDonald, who has bagged nine goals this season.

He can go in the huff or he produces the performances and gets a move in the summer Motherwell boss Maurice Malpas

Rangers manager Walter Smith also failed with January bids for Wigan's Lee McCulloch and Falkirk's Alan Gow.

"I completely understand Maurice's decision," Smith told the Daily Record.

"We would have liked to get Scott on board but Motherwell have to do what they believe is right for them.

"Had they not sold Foran it maight have been a different story."

Malpas said he was looking for McDonald to knuckle down and concentrate on helping Motherwell climb the league.

"I think Scott needs to stand up and be counted now, his character will be tested now," said Malpas.

"He can go in the huff - and nobody gains from that if he sticks two fingers up at the club - or he produces the performances and gets a move in the summer."

McDonald is already popular with Rangers supporters, having scored two dramatic late goals to defeat Celtic and hand the title to the Ibrox side on the final day of season 2004/05.