The 40-year-old is out of contract this summer and has yet to enter contract negotations with the Ibrox club.
GlasgowWorld understands both parties remain open to discussions over a new deal to prolong McGregor’s stay, with a coaching role in the pipeline.
McGregor, who helped Giovanni van Bronckhorst’s side reach the Europa League Final and clinch Scottish Cup glory last season, has enjoyed a glittering playing career.
Many supporters felt his late substitute appearance during the Scottish Cup Final against Hearts at Hampden was his final farewell but McGregor refused to rule out extending his stay beyond the summer.
Rangers have been linked with a number of goalkeeping options should the former Scotland international opt to hang up his gloves.
Former team-mate Boyd, who played alongside McGregor during his first spell in Govan, reckons the club must respect his decision, whatever the outcome.
Speaking to Sky Sports, Boyd said: “At this moment in time, there will be a lot of hard work getting done behind the scenes.
“I think Jon McLaughlin has shown he can step in. Whether he’s ready to play a full season for Rangers is a different story. It remains to be seen if he’s given that opportunity.
“You would imagine if Allan McGregor doesn’t sign a new contract then Rangers will bring in another goalkeeper.
“The question is will that be someone who is No.2 behind McLaughlin or first choice. That’s an important decision Rangers will have to make.
“I think a few months ago you would probably have said this would’ve been McGregor’s last season but the way it finished for him he probably wants more of it.
“It’s a difficult one. Usually when you come to the end of your career you might only play a handful of games. If that’s the case, all of a sudden you might feel that your time is up.
“But Allan started the majority of games last season and it’s very difficult to walk away having just played 30-40 games because your fitness levels are there and you’ve proven that you can still perform at the top level.
“He played a big part in the season, so only Allan knows what he’s going to do and whether his body can go again. From a Rangers point of view, you’ve got to respect his decision as well.
“He has done a lot for the football club but I know Rangers will want to know what is happening very soon.”