Murphy has been ruled out for the rest of the season, and the Gers boss is keen to sign a replacement in the final few days of the transfer window.
The report claims that the Ibrox outfit want to sign the 22-year-old on a season-long loan with the option to make the transfer permanent next summer.
Huge transfer gamble from Steven Gerrard
Gauld was seen as one of the highly rated attacking midfielders when he was at Dundee United but his career has taken a downward trajectory since his ambitious move to the Portuguese club.
He has been made available by the Portuguese club and signing him would be a huge gamble even if on loan. While he has the potential and age on his side to resurrect his career, Gerrard should be looking at better alternatives to replace a class player like Murphy.
He managed one goal in 18 league appearances last season whilst on loan at Desportivo Aves, and suffered a number of injuries as well. His career has taken a turn for the worst and Rangers should pass on the opportunity to sign him.