A consortium led by former Rangers manager Walter Smith have withdrawn their bid to buy the club from Charles Green.
Smith said an offer of £6million to the Green consortium through Zeus Capital had been rejected, and confirmed his group have now pulled out of attempts to own the newco club in order to allow the new owners to proceed in their own way.
"Our offer has been rejected and they have made a counter-offer inviting us to join their consortium," a statement from Smith read.
"However, the current business plan is not in accord with our understanding of the present circumstances of the Club and the way forward, but we would prefer to leave them to proceed in their own way and we wish them good luck in their endeavours."
The Smith-led consortium revealed a dramatic 11th hour bid for Rangers on Thursday, as failure to secure a Company Voluntary Arrangement (CVA) consigned the club to liquidation.
Green and his investors subsequently completed the purchase of the business and assets of Rangers as a newco for £5.5million and were urged to consider a quick sale by the veteran boss.
However, Smith - who stressed their initial offer to administrators Duff and Phelps was made before Green`s acquisition was completed - is now prepared to step aside following "verbal assurances" provided by the new regime.