Ally McCoist`s reign as Rangers manager ended on Sunday when he left the troubled Glasgow club, the Scottish second-tier side announced.
The 52-year-old was already working a 12-month notice period after handing in his resignation last week.
"Rangers would like to announce that Ally McCoist is relinquishing his duties as manager and will serve out the remainder of his 12 month notice period on gardening leave," said a club statement.
"We would like to thank Ally for all his hard work and dedication over the last few years, but we feel it is now in the best interests of all parties to move on.
"Assistant Manager Kenny McDowall will take over his duties until the end of the season."
McCoist`s departure comes on the eve of the club`s annual general meeting which promises to be a stormy affair with the team nine points behind Championship leaders Hearts -- who have a game in hand -- in the race to return to the top flight.
McCoist, a former player with the club where he scored a record 355 goals, was appointed to the Ibrox hotseat in the summer of 2011 but his time as Rangers manager was plagued by problems on and off the field.
Rangers, with 54 league titles won in their glory days, suffered a series of financial problems with a liquidation crisis seeing them banished to the third division in 2012.
Last season`s Challenge Cup final defeat to Raith Rovers was seen by many as a new low, but the defeat to Alloa in the semi-final of this year`s competition earlier in December proved to be the breaking point.
The club needs to raise £8.3 million (10.6 million euros) before April 1 next year to stay in business.