Hibs have refused to sell the 23-year-old, despite Allan handing in a transfer request after Gers’ opening two offers of £175,000 and £225,000 were rejected by the Edinburgh club.
Allan was left on the bench when the two sides met in the Petrofac Training Cup last month, although he did come on in the latter stages of the 6-2 defeat for Alan Stubbs’ side.
The Ibrox club have been long-time admirers of Allan and he was linked with a move there last summer before he opted for Easter Road.
By handing in a transfer request, Allan has made clear his desire to join the club he supported as a boy.
He has received a mixed reception from Hibs fans since, with some booing him and others applauding him when he came on in the League Cup against Montrose at the weekend.
Allan scored seven minutes after his introduction against the League Two side, however, and his manager Stubbs remains his prized asset will not be going to Rangers.
Hibs have stood firm against continued interest from their Scottish Championship rivals and insist they will not sell to a rival title contender.