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Rangers boss Alex McLeish will leave the club at the end of the season, when Paul Le Guen is widely tipped to take the Ibrox reins.
McLeish was given a stay of execution just before the New Year and the Govan club's SPL form picked up.
But the Gers lost 2-0 to Aberdeen on Wednesday night, following hard on the heels of an embarrassing 3-0 Tennent's Scottish Cup fourth round exit at the hands of Hibernian at Ibrox.
The SPL champions have slipped back into fourth place in the table, behind leaders Celtic, Hearts and Hibernian.
The Light Blues, who are still in the Champions League where they will face Villarreal in the last 16, are now 18 points behind their great rivals ahead of the third Old Firm clash of the season at Ibrox on Sunday.
Chairman David Murray told Rangers World: "The manager's departure was agreed in early January as Alex believed that a four-and-a-half-year term at the club was an appropriate period upon which to end his tenure.
"It had always been the board's intention to make this announcement after the Villarreal Champions League matches, in conjunction with other major changes that will have a significant impact, both in terms of new investment and personnel.
"However, in light of recent results and helpful discussions with various supporters' groups, directors and senior players, it was agreed that the announcement of the manager's departure should be made now.
"Alex McLeish has enjoyed a highly successful period winning seven trophies over four-and-a-half years and during this time there has been significant financial constraints throughout the football environment in general.
"I also believe that, collectively, the club and the supporters together will play their part in success returning to Rangers Football Club."
Former Lyon coach Le Guen is the man expected to replace McLeish, having enjoyed massive success with the French club.
McLeish was given a stay of execution just before the New Year and the Govan club's SPL form picked up.
But the Gers lost 2-0 to Aberdeen on Wednesday night, following hard on the heels of an embarrassing 3-0 Tennent's Scottish Cup fourth round exit at the hands of Hibernian at Ibrox.
The SPL champions have slipped back into fourth place in the table, behind leaders Celtic, Hearts and Hibernian.
The Light Blues, who are still in the Champions League where they will face Villarreal in the last 16, are now 18 points behind their great rivals ahead of the third Old Firm clash of the season at Ibrox on Sunday.
Chairman David Murray told Rangers World: "The manager's departure was agreed in early January as Alex believed that a four-and-a-half-year term at the club was an appropriate period upon which to end his tenure.
"It had always been the board's intention to make this announcement after the Villarreal Champions League matches, in conjunction with other major changes that will have a significant impact, both in terms of new investment and personnel.
"However, in light of recent results and helpful discussions with various supporters' groups, directors and senior players, it was agreed that the announcement of the manager's departure should be made now.
"Alex McLeish has enjoyed a highly successful period winning seven trophies over four-and-a-half years and during this time there has been significant financial constraints throughout the football environment in general.
"I also believe that, collectively, the club and the supporters together will play their part in success returning to Rangers Football Club."
Former Lyon coach Le Guen is the man expected to replace McLeish, having enjoyed massive success with the French club.