The South Africa-based millionaire and Light Blues chief executive Craig Mather both released statements over the weekend indicating that King was poised to become chairman following talks between the pair and finance director Brian Stockbridge last week.
But, at the request of Nominated Adviser Daniel Stewart, the Gers have now stressed that 'regulatory matters' would need to be taken care of before the businessman can take his place at the Ibrox top table.
A statement to the Stock Exchange this morning said: "At the insistence of our Nominated Adviser, the Board needs to make it clear, for regulatory reasons, that the Board of directors referred to above is The Rangers Football Club Limited, the wholly owned subsidiary of The Rangers International Football Club PLC.
"Although we welcome the support of Dave King, no decision has been made to appoint him as a Director. There are regulatory matters which would need to be resolved prior to any such appointment.
"The Directors also expect that in the medium-term future, possibly coinciding with the return to top-league football in Scotland, it may be in the best interests of the Company to raise further capital.
"However, there is no requirement for short-term funding, and as such neither the Company nor RIFC are actively seeking finance.
"Nonetheless, we are committed to exploring a future involvement by Mr King in the Club."
The possible return of King has been welcomed by Rangers fans, who have held high-profile protests against the current board in recent weeks as they bid to force change in the Ibrox corridors of power.
The Scot ploughed £20million into the club during the Sir David Murray era and has indicated that he would be willing to invest more money as Ally McCoist's side continue their journey back to the top of Scottish football.
King's appointment as chairman would be met with widespread approval by the Light Blue legions, and Rangers Supporters' Assembly chief Andy Kerr is confident they can trust the boyhood Gers fan.
He told SportTimes: "You have to bear in mind that he has already invested £20million in Rangers. He is a fan who wants to do his best for the club and feels that he can help the club over the coming years.
"It is encouraging that he is back in the frame and has chosen to come on board as chairman. Dave has been the poker player in all of this. He certainly won't squander his money. He will want to see things done properly.
"He is not talking about investment at this point but it is looking increasingly likely that the club will need some investment going forward and hopefully, at that point, he will invest again."