Walter Smith has urged Rangers fans to support the boardroom changes that were proposed by a disgruntled group of shareholders last week, hours after he stepped down as club chairman.

His departure, which had been touted all day, was confirmed in a 4pm announcement to the London Stock Exchange.

Smith has stepped down three days after former chief executive Charles Green returned to the club as a consultant and issued a public warning to manager Ally McCoist over his long-term future.

In a statement to the London Stock Exchange, 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."

His departure, which had been touted all day, was confirmed in a 4pm announcement to the London Stock Exchange.

Smith has stepped down three days after former chief executive Charles Green returned to the club as a consultant and issued a public warning to manager Ally McCoist over his long-term future.

In a statement to the London Stock Exchange, 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 backed calls for Frank Blin and Paul Murray to join the board, which he departed today, although he stated that chief executive Craig Mather was doing a good job and hoped he would be able to continue.

The former Rangers manager also called for his successor Ally McCoist to be given the chance to manage the club "under conditions similar to those which were afforded his predecessors".

He said it was with great regret he was stepping down after only two months as chairman, and that it was one of the toughest decisions of his Ibrox career to walk away.

In a statement, Smith said: "Unfortunately, recent events have led me to the conclusion that the only option left open is for me to submit my resignation and to leave the Board of Directors with immediate effect.

"Working with a Board which could rarely find consensus and agreement has created a highly-dysfunctional environment which has not been good for the Club. On top of that, there has been recent further disruption which again has rendered the Board less effective and efficient than it ought to have been.

"It is clear that Boardroom change is required and I would urge Rangers fans to get fully behind the resolutions which last week were presented to the Board and shareholders.

" I would like to remind the Directors that when a General Meeting was requisitioned earlier in the year I, as Chairman, was urged by everyone on the Board to do everything in my power to avoid such a meeting. At that time, I worked very hard to achieve that and now I am urging the Directors to do exactly the same this time and if that means Boardroom changes then so be it.

"In fact I am now imploring everyone to back these proposed changes so that much-needed stability and a level of integrity can be restored to the Ibrox Boardroom.

He said current chief executive Craig Mather was doing a good job.

He added: "It is unfortunate that this has happened but when change does come I hope he'll be allowed to continue the job he has started.

As for Alistair McCoist, it is important that we all appreciate that no other Rangers manager has had to work with poorer or more trying circumstances. It is my fervent hope that when the dust settles and Rangers have a clearer path and future he is given the chance to manage under conditions similar to those which were afforded his predecessors.

He said long-suffering fans should be "proud of their contribution." He added: "They did not waver in their support of their Club and as far as I am concerned they have been absolutely the one outstanding feature of this Club.

"Indeed, they are a reminder to those in the Boardroom that Directors have the massive and ultimate responsibility of serving, protecting and nourishing this Club for the benefit of the fans and not an individual or any associates. Rangers fans are a credit to their Club and they really do deserve so much better."<

Smith was then elevated to chairman in May following the departure from the board of Malcolm Murray, a month after Green himself quit as chief executive amid an investigation into his links with former Rangers owner Craig Whyte, although he denied any wrongdoing.

However, the tension and split at the heart of power which was once defined through Murray and Green's fractious relationship continued to simmer under the surface until a group of disgruntled shareholders launched a bid for boardroom power last week.

Green's first act after being appointed as consultant was to conduct a press interview in which he stated McCoist had to win a cup this season, and implied that his successor Craig Mather had been too generous with his player budget.

Hours later, Rangers crashed out of the League Cup at Forfar before McCoist launched a stinging attack on Green, branding him an "embarrassment" and accusing him of having contempt for the club and Scottish football in general.