The Scottish champions were able to buy players for the first time in two years in the summer, with the arrival of £4million striker Nikica Jelavic and James Beattie from Stoke, as well as loan signings Vladimir Weiss and Richard Foster.

Addressing shareholders at yesterday's AGM, Bain explained that any further acquisitions were likely to depend on the club's success in Europe.

He said: "While our financial position has improved, we have to prioritise our spending.

"As we have seen in the last two years, it is the success on the field that has underpinned the operational financial performance of the club.

"I would like to say that we will sign more players in the January transfer window but it would be irresponsible of me to do so at this stage.

"Strengthening the squad, both in depth and in quality, is at the forefront of our thoughts.

"Much will depend on our position in relation to European football after Christmas and, indeed, further discussions with the bank."

He praised the efforts of boss Walter Smith, while highlighting the importance of remaining prudent after recent financial results recorded a reduction in the club's debt by £4million to £27.1million.

Bain added: "The efforts of Walter Smith, his management team and the players have brought immediate and tangible benefits to the club.

"While we are not getting carried away and need to move forward prudently and responsibly, the achievements of the last 12 months have enabled us to build a more solid base for our future aspirations.

"There is a delicate balance in meeting the immediate needs of the team and future players costs in line with future revenues.

"Going forward over the next few months, we will need to manage this accordingly and at times be more reactive to situations than we have been able to be so in recent times.

"Qualification for the Champions League for a second successive season was of paramount importance and will provide substantial revenues to the club."

Rangers host Valencia in the Champions League on Wednesday, having taken four points from games against Manchester United and Bursaspor already.

Bain again praised supporters for their behaviour in Manchester for last month's game at Old Trafford, after the events in the city during the 2008 UEFA Cup final.

He said: "We were delighted to get our Champions League campaign off to a successful start against Manchester United at Old Trafford.

"And I would like to thank our supporters once again for showing everyone our true colours.

"After the events in Manchester two years ago, the club and supporters were inevitably thrown into the spotlight for this fixture.

"I'm indebted to the Rangers Supporters Assembly and other groups for working so hard for the club to ensure things went well.

"Only a couple of weeks ago, I was particularly pleased to receive a letter from Ian Hopkins, Assistant Chief Constable of Greater Manchester Police, thanking our fans and club."