Walter Smith has resigned from his role as non-executive chairman of Rangers and from his position on the club’s board.
The move comes just days after former chief executive Charles Green returned to the club as a consultant.
Upon his arrival, Green issued a public warning to manager Ally McCoist over his long-term future and said his side had to win a cup as well as the Scottish League One title this season.
McCoist was angered by Green’s comments and hit back, describing him as an "embarrassment".
In a statement to the London Stock Exchange on Monday, the club said: "Rangers announces that Walter Smith has today resigned from his position as chairman and a director of the company with immediate effect."
Smith, who lifted 21 major trophies during two separate spells as Rangers manager, only took on the non-executive position in May, when he replaced Malcolm Murray.
Information from the Press Association was used in this report