The Ibrox team have repeatedly been linked with the 23-year-old, who moved to Easter Road last summer following an unsuccessful stay in England with West Bromwich Albion.
Celtic have also been credited with an interest in Allan but have so far remained tight-lipped on whether they intend to bid for him or not.
The former Dundee United player grew up supporting Rangers but the club did not attempt to sign him 12 months ago under former manager Ally McCoist.
Allan said on Thursday he was looking forward to the season ahead with Hibs, with his coach Alan Stubbs seeking to tie him down on a new deal.
He has one year left on his contract in Edinburgh and it is thought he would cost at least £500,000 to prise away from the capital.
Rangers are keen to bring the average age of their squad down from where it was last season and new manager Mark Warburton is a huge advocate of emerging youth talents.
He made his first signings since arriving in Glasgow this week and defenders Danny Wilson (23) and Rob Kiernan (24) both have the credentials being sought by the Scottish Championship team.
They are looking to recruit other players who are young enough to be developed further and possibly moved on for a profit further down the line.
In that respect, Murray is keen on Allan and he told The Times: “He’s obviously under contract with someone else so we can’t talk about him in too much detail.
“But we should be seeking to identify players to our team and our squad and bring them in and add further value to them through what we do here.
“It’s like manufacturing where you take the raw material in, add value to it and get a finished product.
“Scott Allan is an example of a player I personally think is a very good player. His profile is right as a young guy with a lot of potential. He has played quite a lot of football.
“I think he’s a player a lot of clubs would like to sign. And obviously there have been opportunities (for Rangers) to sign him in the past which have slipped past.”