The former Ibrox director is prepared to resume a role at the club provided key conditions are met after a summit in South Africa with Ibrox chief executive Craig Mather and finance supremo Brian Stockbridge.
But King is demanding full access to the club's balance sheet before fully committing himself to a seat on the club's beleaguered board.
And the Glasgow-born businessman has ruled out buying any shares just now and will only invest when the time is right and he knows that the money will be going straight into Rangers for the club's benefit, most likely as part of a fresh share issue.
King's return needs board approval, though, and that will require the assent of James Easdale, a non-executive director of Rangers International Football Club, and his brother, Sandy, who sits on the football club board, who own or have proxy over almost 25% of the club's shares, as well as the other non-executive directors, Ian Hart and Bryan Smart.
Earlier today, there was a warning that King would only be enticed back to Rangers if he could be guaranteed a real say in how the club is run.
It came from former Ibrox chairman, Alastair Johnston, who was responsible for introducing the South Africa-based multi-millionaire to the club in the first place.
King ploughed £20million into Rangers in 2000, and had a seat on the board as a non-
But, like his investment, this was lost when the club went into administration then liquidation.
Now, after agreeing a settlement with the authorities in South Africa over tax issues, and following Monday's visit from Mather and Stockbridge, King is ready to grab an olive branch in a move that would delight Rangers fans.
However, while Johnston believes it would be a very positive move for Rangers, he claims his friend would not settle for merely being on the board, but would require the power to make his presence count.
Johnston is not convinced even filling the chairman's position vacated by Walter Smith would provide all the guarantees he believes King would require to add his backing to the current regime.
"I'm not sure how much authority the chairman has right now," said Johnston.
"It really depends on what role the chairman has, and that's determined, to a great extent, by the individual.
"Dave is not going to go in there in any circumstance where he doesn't have control.
"If Dave can't see the role of chairman as anything more than a figurehead, I don't think he will be interested."
Johnston can fully understand why Mather and Stockbridge made their overtures to King, and is convinced what he can bring to the table - not just his money - would hugely benefit the club at this difficult time.
He said: "Dave's own personal circumstances have progressed in South Africa and he is a very bright guy, and keeps his cards very close to his chest. His agenda, experience and the care and attention he pays to the financial matters would serve Rangers well.
"Whether he would come into the circumstances where he doesn't have a great deal of control as part of an investment is one only he can analyse at this point in time."
Johnston has also thrown his weight behind a return for another former director, Paul Murray, who has joined Jim McColl in heading a shareholder uprising.
He said: "What he brings to this, with the alliances he has and the support he has, is credibility with financial institutions. If he and his group can bring that, it will be a step in the right direction.
"Rangers are not back on stable ground yet."