RANGERS chief executive Charles Green has been forced out of Ibrox after losing the support of the majority of the board.

The sudden announcement he would step aside plunged the troubled Third Division club into yet another crisis while an investigation continues into Mr Green's buyout of the club's assets and links with its disgraced former owner Craig Whyte.

Rangers International Football Club plc, which currently owns the club, announced Mr Green's decision to step down as chief executive with immediate effect on the London Stock Exchange.

It stated he would leave the company following an orderly handover by the end of May, while for the moment he remains the largest individual shareholder with a 7.68% stake.

Mr Whyte said he was unsurprised and would continue pursuing legal cases against Mr Green and his group, claiming his evidence shows they were acting as a front for him during Sevco 5088's £5.5 million deal for the club's assets last summer. He was demanding £1m a year for life or 25% of the Ibrox chief executive's shares.

"The point is that Green lied to everyone the day he arrived in Glasgow and everyone can see that now," he said.

When directors met last Saturday morning to discuss allegations by Mr Whyte, there was not enough support to oust Mr Green and his associate Imran Ahmad and an independent probe was announced.

But as accountancy firm Deloitte began the investigation the balance of the board shifted, with at least one director turning against Mr Green.

Supporters' groups said the latest developments put the club into more turmoil and called for the board to find a way to move forward swiftly.

Mr Green has admitted teaming up with former owner Mr Whyte in the early stages of the buyout of the club. The former Sheffield United chief executive added that Mr Whyte's £25,000 cheque for legal fees over the transfer of shares had bounced.

Secret recordings made by Mr Whyte appeared to reveal that Mr Green told him while discussing a takeover: "You are Sevco, that's what we are saying."

Mr Green, who holds five million shares worth more than £3m, has admitted that when Mr Whyte wanted to invest, his associate Mr Ahmad asked him to come up with £6m, which he said did not materialise.

He insisted he was not Mr Whyte's frontman and continued to claim Mr Ahmad had fed the former Rangers chairman the information he wanted to hear in order to secure the shares, if needed.

In the statement, Rangers International Football Club plc said Mr Green strenuously denied any wrongdoing but "recognised that this negative publicity is a distraction and is detracting from the achievements and reputation of the club".

The company added: "The board has commenced the search for a new chief executive and expects the role to attract high-quality candidates from both within and outwith the industry."

Andy Kerr, president of the Rangers Supporters' Assembly, said: "The last thing we needed is more turmoil. Part of me says, are we almost back to square one again? How will this impact on the people he has brought on board, and where does this leave all the investors? Our concern is that we are going to go full circle and we are going to have the same issues this summer as we did last summer."

Mr Green, who earns a base salary of £360,000 a year at Rangers and was due to receive a 100% bonus if the side reached the Scottish Premier League, is said to have few allies on the board, having clashed with chairman Malcolm Murray, who was asked to step down at a board meeting in February.

Former Rangers manager and fellow director Walter Smith said last week that he felt Mr Green should have divulged links with Mr Whyte.

Meanwhile, Scottish engineering entrepreneur Jim McColl quashed rumours he might be interested in buying Mr Green's stake in the club.

He said: "It is not something I had looked at, or have had discussions with anyone about."

Rangers' share price rose 2.5% after yesterday's news.

Mr Green said: "Recent events have undoubtedly been a distraction for both myself and all involved with Rangers and I feel that it is appropriate that I step down so that the club can continue to progress back to where it belongs at the pinnacle of Scottish football.

"I am very proud to have been associated with a club of the stature of Rangers and am proud of the achievements of the club during my tenure as chief executive."