Paul Le Guen has left as manager of Rangers by mutual consent.
The Frenchman took charge in the summer but has presided over a disappointed season so far, with Rangers 17 points behind leaders Celtic in the Bank of Scotland Premier League.
He stripped the popular Barry Ferguson of the captaincy on Monday, and dropped him from the squad for the next day's match at Motherwell in the Bank of Scotland Premier League.
Le Guen claimed Ferguson had attempted to exert undue influence on the Rangers squad, and argued that the 28-year-old was undermining his authority.
It appeared that one of the two men would have to leave, and Le Guen's departure makes him the shortest serving Rangers manager in the club's history, having served just seven months.
Le Guen has left by mutual agreement, with executive chairman David Murray saying: 'Having met with Paul it was clear that in the interests of the club and all concerned we agreed jointly to him stepping down as manager.'
Le Guen was hugely successful in French football with Lyon, helping them win three successive Ligue 1 titles.
However, he struggled to make the transition to the Scottish game.
Murray added on www.rangers.co.uk: 'We are all clearly disappointed with our current circumstances and will now focus on securing a suitable replacement.
'I would like to wish Paul and his management team well in the future.'
Le Guen added: 'I am disappointed to leave the club, but I think it is the best solution for all concerned.
'I would like to thank all the people who helped me and my team during my spell in Scotland. In particular I would like to thank the directors who at all times gave me their total support.'
Reserve-team coach Ian Durrant will take charge of training tomorrow.
Rangers play Stephen Kenny's Dunfermline Athletic on Sunday in the Scottish Cup.
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