Smith confirmed today that negotiations with the player and Rapid Vienna were continuing with a deal worth upwards of £3million possibly coming to fruition next week.

The purchase would be Smith's first since August 2008 but the Rangers manager is keen to add a total of three players this month with a wide man his other priority.

And he is not putting all of his eggs in one basket with the Croatia frontman.

"It all depends on exactly how the negotiations go but we would have a bit of money left to bring in other players," Smith said.

"We have to bring some in anyway, the squad is far too small. Hopefully we can get some in before the start of our season, but if that doesn`t happen then obviously before the end of the transfer window.

"If we can bring in three players, that would take the group up to 18. We`ve got one or two younger boys who have been doing well in pre-season and they can bolster our squad over pre-season. Ideally we would like to bring in at least three.

"We have been looking more for front players, we have lost DaMarcus Beasley, Kris Boyd and Nacho Novo so we have to fill in to that area."

Rangers chief executive Martin Bain failed to seal a deal for Jelavic after flying to Austria this week, but Smith is hopeful of a successful outcome in the coming days.

The 24-year-old scored 21 goals last season, including three against Celtic in the Europa League.

Smith added: "Negotiations with both the club and the player, and his agents, are ongoing.

"They are keen for him to play in their domestic game at the weekend. We will hopefully find out one way or another at the start of next week."

"He's a player we have been watching for a while. As normal, the club initially weren't too keen to sell him, but then they indicated they would be happy to listen to what we had to say.

"He's a player I think would do a really good job for us."

Smith does not expect Rapid to hold out until after their Europa League play-off against Aston Villa later this month.

"No, there's not that fear," Smith said. "I think we have to have a resolution at some stage next week."

Meanwhile, midfielder John Fleck faces six weeks on the sidelines after suffering a hamstring injury in Wednesday's 2-1 win over Clyde.

Rangers had expected the timeframe to be two to three weeks but Smith said: "Unfortunately he will miss maybe six weeks, up to that anyway. Hopefully we will get him back before then.

"It's disappointing because he has been playing well in pre-season."

Smith, who will be without Andy Webster for tomorrow's friendly against Newcastle after the defender suffered a groin strain, also gave an update on Honduran trialist Georgie Welcome.

"He has only been in a couple of days of full training," the Rangers boss said.

"Unfortunately we can't play him in any games.

"Hopefully we can get a closed-door game in the early part of next week and look at him then."