Rangers confirmed on Friday that chief executive Charles Green has offered to resign with immediate effect following recent revelations about his takeover of the fallen Scottish giants.
Green is expected to leave Ibrox by the end of May, with the search for his replacement already under way.
He took the decision to step down following "negative publicity" in recent weeks over his consortium's acquisition of the club last year, but, "strenuously denies any wrongdoing".
The Rangers board announced last week plans to commission an independent investigation following claims by former owner Craig Whyte that he was involved in Green's takeover.
Whyte has alleged close links with Green and commercial director Imran Ahmad when their consortium completed the purchase of Rangers' business and assets after the club went into liquidation and were relegation from the Scottish Premier League to the Third Division as punishment.
Green, who was forced to apologise recently after being charged by the Scottish Football Association for allegedly using "racist and offensive" language, refuted the allegations by Whyte, who was in charge when the club plunged into administration.
"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," Green said.
"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."
A statement to the Stock Exchange from Rangers, who recently clinched promotion to the Second Division, added: "Recent weeks have seen media interest in the circumstances surrounding the period prior to the acquisition of The Club by the consortium led by Mr Green.
"Whilst Mr Green strenuously denies any wrongdoing, he has recognised that this negative publicity is a distraction and is detracting from the achievements and reputation of The Club.
"As a result, Mr Green has informed the Board that he will leave his post with immediate effect and leave the Company, following an orderly handover, by the end of May."