Le Guen made 22-year-old Clement one of his first signings when he became manager at Ibrox last summer, going back to Lyon for the midfielder.

However, Le Guen left Glasgow earlier this month, is now in charge at Paris Saint-Germain and has made it clear he'd like Clement to rejoin him.

But now former Liverpool manager Houllier has entered the race.

Houllier said: "Is [the transfer of] Jeremy Clement still happening? The answer is yes, but we are in competition with another great club."

Clement himself has been quoted as saying he wants to rejoin Le Guen, but nevertheless Houllier is hopeful the player could opt to return to Lyon, the dominant team in France.

"It is a fact, I would really like to have him back here and I think it is fair to say he would prefer to come to Lyon rather than go to Paris," said Houllier.

Clement has been offered a similar package by both Lyon and PSG.

He said: "I came to Rangers because I wanted to work with Paul and believed he could achieve things at Rangers.

"But, with him gone, it's back to the situation beforehand where the SPL just isn't rated in France.

"I obviously have ambitions to play for my country, but I wouldn't achieve them by staying on in Scotland.

"That's why I asked the club's management to let me go. They agreed it was probably best for all concerned.

"I was flattered there was interest from other clubs, including Lyon.

"But I made it clear to everyone I wanted to carry on working with Paul at PSG."

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