MARTIN O'NEILL has claimed Rangers need a major rebuild in January if they are to compete with Celtic.

The former Parkhead boss reckons serious business must be done by the next Rangers boss in his first transfer window to "battle it out" with Celtic.

O'Neill - speaking on Go Radio's Football Show - suggested it is obvious Rangers must add to their squad having failed to replace key players over the summer.

Giovanni van Bronckhorst - who was dismissed on Monday - lost Calvin Bassey and Joe Aribo in the recent window with Nathan Patterson moving to Everton in January.

The Ibrox club banked a record fee for Bassey who joined Ajax with further significant fees received for Patterson and Aribo.

But O'Neill states Rangers didn't replace the outgoing players "at all" as he warned a power of work will be required in January.

“Without question. I think everybody can see that," said O'Neill when asked if Rangers must undergo a rebuild in the New Year.

"You can’t lose the calibre of player that they did during the summertime and not really replace that at all, and then expect to battle it out with Celtic.

“Celtic are on a run at this minute. The Champions League, in terms of experience, were brilliant and domestically they have been so strong.

“They are a side that can score some late goals and win some matches.

"I think psychologically when you are on the other side of the fence and cheering on Dundee United, Hibs or anybody.

"Then the next thing you hear is the news from Ibrox of a late goal and it just kills your spirit; I know the feeling.

"That is happening now. Celtic are on a roll and it’s up to Rangers to stop them."

It comes after we reported that Michael Beale is on the brink of a move back to Rangers.

Herald and Times Sport understands the Ibrox coach is the frontrunner for the vacant post with the club closing in on his appointment.

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