Rangers have pocketed a significant transfer windfall after Malik Tillman completed a permanent move to PSV Eindhoven.

The former Ibrox midfielder had moved to the Eredivisie on loan but a deal has been reached for a permanent transfer.

PSV Eindhoven have reportedly shelled out £12m to sign Tillman from parent club Bayern Munich.

Rangers are due a transfer windfall from the deal with 10 per cent owed to the club.

Tillman had been on loan at Rangers with Ibrox chiefs keen to complete a permanent deal for the USA international before a Bayern rethink saw any deal collapse.

Rangers received around £1m in compensation after the Bundesliga club pulled out of the agreement, and a further 10 per cent sell-on fee was included in the settlement.

Now, they are set to pocket £1.2m of the reported £12m transfer fee for Tillman to join PSV Eindhoven.

Tillman has agreed a four-year deal at PSV.

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Tillman said of signing for the Dutch club on a permanent basis: “I am very happy that I will stay at PSV longer. The first season has been great and I hope that we will win many more trophies in the coming years.

“That gives me the confidence that I am in the right place here and that I can develop into an even better footballer.”

Head coach Peter Bosz added: “I am very happy that he is staying. He is only 21 years old, but has already taken so many steps in his development this year.

"That is nice to see and I am curious to see how he will continue to develop.”

Director of football affairs Earnest Stewart commented: “Malik has more than proven his worth this season. He is a fantastic footballer with many qualities.

"In addition, he has also undergone tremendous development, as a footballer and as a person.

"I am very happy that he will play for PSV for a long time.”