Fulham have accused Rangers of penny-pinching in their bid to sign Steven Davis – as reports claim the Ibrox club are close to recruiting Portsmouth’s Pedro Mendes.

The Davis saga continues to rumble on, with Rangers so far failing to meet Fulham’s valuation of the midfielder, believed to be in the region of £4million.

The Northern Ireland international impressed while on loan in the latter part of last season, with both the player and Rangers keen to make the move permanent.

Manager Walter Smith has money to spend in the wake of Carlos Cuellar’s £7.8million departure to Aston Villa this week.

But Fulham boss Roy Hodgson told the Daily Record: “They say Rangers have not had much money until now but I find that hard to understand because they get 50,000 people every other week.

“We are being obliged to contemplate transfers of £6million, £8million, so it seems strange a club of that stature can only afford what they have offered us.

“I would be disappointed if the club allowed him to go for a sum that is below his worth.

“I suppose the risk exists still that because he is not one of the starting four Rangers will come in with a bid that the club finds acceptable, he would desperately want to go and I would be in a difficult situation.”

However, any interest in Davis could be about to come to an end, with Smith now apparently concentrating on the capture of Portuguese playmaker Mendes instead.

Reports claim the 29-year-old will arrive in Glasgow today to undergo a medical and complete the formalities on a three-year deal worth £3million.