WALTER Smith has described the Rangers boardroom as "highly dysfunctional" and lacking integrity in a damning statement released hours after he quit as chairman.

The former manager last night urged fans to back an Ibrox boardroom reshuffle to ensure changes to the way the club is being run.

Smith said the decision to walk away from the club after just two months in his role yesterday was "heartbreaking" and the hardest he had taken in his Ibrox career.

However, he added that it was his only option given the damaging and disruptive working environment.

Read Smith's resignation statement in full

His departure came just three days after it was announced Charles Green, former chief executive and major shareholder, would be returning to the club as a consultant.

A hostile takeover has been launched by billionaire businessman Jim McColl and former club director Paul Murray.

Smith, 65, added: "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."

Smith backed calls for Frank Blin and Paul Murray to join the board although he stated that chief executive Craig Mather was doing a good job and hoped he could continue.

The manager, who led the club to nine Scottish Premier League titles in a row, also called for Ally McCoist to be given the chance to manage the club "under conditions similar to those which were afforded his predecessors".

He said: "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."

Smith said that Rangers fans had "suffered agonies and tortures" over the last two years, had not wavered and deserved better.

"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."

Fans' leaders spoke of their deep ­anxiety as angry supporters gathered at Ibrox last night They have called for an Extraordinary General Meeting to expose the true state of the club's finances, with further demands for an immediate meeting with Mr Mather.

A joint statement released by the main supporters' groups the Rangers Supporters Association, Rangers Supporters Assembly and the Rangers Supporters Trust said that they were "extremely concerned with current

events at our club." It added: "The recent request for an EGM to replace key personnel would suggest our concerns are shared by other significant shareholders.

"We would therefore urge the board of Rangers Football Club to agree to allow the EGM to proceed as soon as possible to enable the thousands of fans who have invested in the club to hear all sides in an open forum." Smith's departure comes just

Mr Mather said he was saddened by Smith's departure. He said: "Walter has his own reasons for this decision but

exactly when he discloses them to everyone is up to him.

"I am certain the last thing he would want to do is damage the club more than is necessary. After all, he returned to Ibrox to help rebuild the club, not to disrupt that process.""I want to assure everyone, fans and investors, that I am absolutely committed to continuing the work that is well underway. The board is totally united on that front."

"A man I respect has left the club but I have a duty to ensure we remain on the right track. There is no doubt in my mind we will overcome any obstacles placed before us but I do fully understand the concerns of the Rangers fans."

A source close to Charles Green described Smith, who lifted 21 major trophies over two periods before handing over to Ally McCoist in 2011, as one of the club's greatest servants and a man of honour.

He added: "He recently said in the media that he was thinking of leaving but we are surprised that it is so soon. Undoubtedly, his decision has been accelerated by the humiliating defeat on Saturday and it made Walter realise how vulnerable Ally is."