Rangers manager Steven Gerrard says Portsmouth have no option to buy Ross McCrorie and insist he has "big plans" for the on-loan 21-year-old.
The midfielder, who can also play in defence, has joined the League One club for the season.
There had been a report that Portsmouth wanted a clause to buy the player at the end of his stay.
"There's no deal for him to go there permanent," Gerrard told Rangers TV. "It is a development loan."
McCrorie made 30 appearances for Rangers last season, having played 25 times during the previous campaign.
"He told me he was desperate for 40-50 games and I agreed with him," Gerrard revealed. "I think that'll be really good for his development.
"I could have been selfish and kept him here as a squad player, but maybe being a squad player won't develop him or move him along as quick as we want."
Gerrard thinks joining Portsmouth will be "a great move for him" as: "Portsmouth is a good club, Kenny Jacket plays the right way, the fans are demanding there and that will prepare him very well for the future here.
"He's our player and we want him here for a long time and we want to help him get to the next level.
"Hopefully he'll come back with 40-50 games under his belt, a better player ready to challenge the lads who've got the shirts. He's certainly one of ours and I've got big plans for Ross McCrorie."
Meanwhile, loan moves for 22-year-old striker Ryan Hardie and 19-year-old winger Glenn Middleton have stalled after managerial departures at Blackpool and Doncaster respectively, but Gerrard is still hopeful of finding clubs for the pair.