The right-back made his first-team debut for Rangers in last season’s Scottish Cup win over Cowdenbeath and has been a regular feature in Mark Kerr’s side this term, bringing to an end 13 years as a Rangers player.
The contract has yet to be signed but terms have been agreed as Houston looks to kick on and continue his progression in the Championship.
“It’s not signed and sealed yet but all agreed. He wants to play at good level for his next level of development,” someone close to the deal told Not The Old Firm.
“He’s loving it, but it’s not quite done and dusted yet.”
Houston has made 17 appearances for Ayr this season to help Kerr’s side to third in the Championship as they look to secure a playoff place and a potential place in next season’s Premiership.
Despite being highly-thought of at Ibrox, Houston has found first-team chances limited and has flourished at Ayr as he gets his first real run of consistent senior games.
It is believed that the deal to take Houston to Somerset Park has a similar clause to Zak Rudden’s move to Partick Thistle, allowing Rangers to re-sign the defender at a specified time in the future.