RANGERS fan George Letham has reluctantly agreed to give the Ibrox board a short extension to repay the £1million loan that was due last week.

The wealthy supporter stepped in to lend his boyhood heroes the seven-figure sum earlier this year as chief executive Graham Wallace was forced to seek a quick fix to the Gers' cash crisis.

As part of the agreement, Rangers were scheduled to give Letham his money back by the close of business on Friday, but after the Light Blues announced plans to raise around £4m in a share option last week, the prospect of him receiving his money appeared bleak.

SportTimes understands Letham held full and frank discussions with Wallace on Saturday and agreed to a short extension to allow the under-fire board more time to come up with the money.

With cash reserves running low at Ibrox, a refusal from Letham would have left Wallace and his fellow-directors with a huge financial headache.

But after stepping up to the plate to help Rangers in their hour of need in March, the lifelong Light Blue was not prepared to pull the rug from under the board's feet at this time.

The full extent of the Gers' financial plight was laid bare in a statement to the Stock Exchange last week when the board admitted that the future of Rangers International Football Club plc would be 'uncertain' if all 19 million of the new shares were not snapped up by existing investors in the coming weeks.

Any funds that are raised will be used to pay off Letham's £1m loan and the £500,000 deal that was agreed with Sandy Easdale, both of which were secured against the Albion car park and Edmiston House.

The Ibrox board originally clinched a deal with major shareholders Laxey Partners but that move came under huge criticism from supporters after it was revealed the Hedge Fund would collect £150,000 in interest payments for the short-term loan.

Rangers had a cash balance of just £4.2m at June 30 this year, but with £2.7m of that unavailable as use for working capital, the board have been forced to issue more shares in a bid to repay Letham and Easdale and provide much-needed money for the coming weeks.

With the financial picture once again bleak at Ibrox, boss Ally McCoist was unable to make any last-minute moves to bolster his squad before the transfer window closed last night.

The Gers' two most valuable assets, Lee Wallace and Lewis Macleod, remain at the club, but seven players have gone out on loan - Barrie McKay (Raith Rovers), Calum Gallacher (Cowdenbeath), Danny Stoney (Stranraer), Luca Gasparotto (Airdrie), Robbie Crawford (Morton), Tom Walsh (Stenhousemuir) and Craig Halkett (Clyde).