McGregor turned 39 this season, but Boyd insists “age is only a number” and replacing the veteran could cost the Ibrox coffers more than £4m.
His contract expires in a matter of weeks but Boyd believes it’s “imperative” for a deal to be done – to allow transfer cash to be diverted elsewhere on the pitch.
Saving cash would be a twist for the goalkeeper who has saved Rangers several times this season, conceding an average of one goal every three games in this season’s SPFL Premiership winning campaign.
Speaking on Sky Sports, Boyd said: “The thing about Allan McGregor, with his performances this season, should he sign a new deal which I think everyone connected with Rangers is hopeful will be tied up over the next few weeks – he’s going to save Rangers a helluva lot of money to try and replace him.
"You have Jon McLaughlin there but you’d still need to bring someone else in.
"That now allows Steven Gerrard to go and spend that money potentially £4m or £5m – we’ve seen [Vasilias] Barkas come in [at Celtic] and it’s not worked for him, but that’s the type of money they spent.
"So Steven Gerrard could have that money to go and strengthen the squad elsewhere.
“It’s imperative that Rangers tie Allan McGregor down to a year or two years because age is only a number with this guy’s performances.”