The Scottish club released a simple statement to the London Stock Exchange, simply stating: "Rangers announces that Walter Smith has today resigned from his position as chairman and a director of the company with immediate effect."
Smith won 21 trophies in his managerial career at Ibrox during two periods although handed over to Ally McCoist in 2011. The former manager has only been in his non-executive position since May after taking over from Malcolm Murray.
Smith is expected to release a statement in due course explaining his decisions for his departure.
His decision to leave the club comes just days after current Rangers boss Ally McCoist reacted to comments made by current paid consultant Charles Green.
Green was quoted in a national newspaper saying that McCoist’s role at the club might not be secure even if they manage to win the League One title. He was also quoted repeated his assertion that the current Rangers squad is the worst in the club's long history.
McCoist reacted very angrily to these comments, describing the behaviour of Green as appalling and insisted that Green, who stepped down as chief executive in April, an embarrassment to the club.
It now is obvious that the pair will not work co-operatively at the club anymore and that one will have to leave their position before the club is able to make any attempt at moving forward.
Smith left Ibrox in 1998, managing Everton and Scotland before returning to the club in 2007 with McCoist as his assistant, the two worked co-operatively and led the club to three more titles.
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