The Gers are shuffling their pack before the transfer window slams shut and are expected to complete the permanent signing of winger Scott Wright from Aberdeen.
Moving Barker on will free up funds and the wide-man is poised to link up with Oxford on a loan deal.
Barker has struggled to make an impact at Ibrox despite being highly regarded by the Rangers coaching staff and is poised to move on.
He will hope to play on a regular basis with Oxford and it remains to be seen whether the loan will contain any option for the U’s to keep him permanently.
Barker has made just 13 appearances for Rangers across all competitions this season, with just 358 minutes of action in the Scottish Premiership.
He was an unused substitute in Rangers’ 1-0 win against Hibernian earlier this month.
Oxford currently sit in eighth spot in the League One standings.
