Neil Lennon believes the outcome of Celtic and Rangers’ European ties could help decide the first Old Firm clash of the season.

Both clubs are in Europa League action on Thursday before the biggest Premiership encounter of the campaign so far at Ibrox on Sunday.

Celtic travel to the Netherlands trying to protect a 2-0 lead against AZ Alkmaar, whilst Rangers have a more slender 1-0 advantage as they head for Aremnia for their return leg against Alashkert.

Lennon reckons if one of the teams suffers a disappointment on the continent they could subsequently suffer domestically this weekend.

The expectations will be on Rangers as hosts and reigning champions but an improving Celtic will ensure an intriguing first test of both teams’ title credentials.

Lennon said: “It’s a big week for both Celtic and Rangers. I don’t think either of their European ties are a foregone conclusion.

“And then obviously there’s a big game at the weekend as well.

“I think it will depend on how results go in midweek.

“Psychologically, if both teams go through then the game’s in the balance.

“But if one loses then the other one, psychologically, gets the upper hand.

“For example, Celtic lost to Hearts on the opening day of the season and then Rangers lost to Dundee United and Celtic won 6-0 the following day.

“It could be nip and tuck the whole way [this season].”

Rangers won all but one of the five Old Firm derbies last season, with Celtic managing just a single point against their biggest rivals with a 1-1 draw in March.

They could lay claim to misfortune on more than one occasion in the matches.

But Lennon admits the result is all that matters when Glasgow’s big two go head to head.

The Northern Irishman added to BBC Scotland: “I always enjoyed them, they were great occasions - and as a manager as well.

“They’re always good to win, but they’re not so great to lose, obviously.”

Meanwhile, Lennon admits he is keen to return to management - eventually.

The former Celtic and Hibs manager left Parkhead in late February after the Hoops’ hopes of 10 in a row had slipped away, but has confessed he is currently relishing some down time.

Regularly employed as a media pundit, Lennon said: “You get the itch eventually, but I’m really enjoying life at the minute. I’m playing a lot of golf, very badly, and going to games and doing a bit of travelling.

“But it’s in your blood, so eventually you do want to get back into it.

“Every manager will tell you the same, your career has peaks and troughs along the way, and you’ve just got to enjoy the good times while they’re there.”