Rangers midfielder Matt McKay is set to seal a permanent transfer out of Rangers to South Korean side Busan I'Park, STV understands.

The Australian international is surplus to requirements at Ibrox, having made just three appearances for Ally McCoist's side.

It is understood the player's agent, John Viola, is in South Korea putting the finishing touches to the deal, which is expected to be concluded within the next 24 hours.

McKay arrived at the club in August 2011, moving from Australian side Brisbane Roar in a £250,000 move.

It is understood the 29-year-old has already said his goodbyes at Murray Park, as he becomes the first player to leave with the club in administration.

The club's administrators, Duff and Phelps, are currently reviewing the budget at Rangers, with a view to potentially releasing players from their contracts.

McKay was left out of Australia's latest squad for a World Cup qualifier with Saudi Arabia, which was announced on Tuesday.

The 2012 K-League season is due to start on March 3. McKay had a previous spell in South Korea with Incheon United in 2006, but didn't make a competitive appearance during a short loan.