The Yorkshireman will step down from the role with immediate effect and will leave the company by the end of next month. The Ibrox club are now seeking a replacement for the man who has been at the helm since his consortium's acquisition of Rangers' business and assets last summer.
A statement, released to the London Stock Exchange, read: "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. A further announcement will be made in due course."
Green has strenuously denied any wrongdoing amid recent allegations by former owner Craig Whyte that he was involved in the newco takeover.
The claims by Whyte, who was in charge when the club plunged into administration last February, before being consigned to liquidation, were refuted by Green. The Rangers board last week commissioned an independent investigation into the running of the club by Green and commercial director Imran Ahmad in light of the allegations.
The statement continued: "The Company announces that Charles Green has notified the Board that he wishes to step down as Chief Executive with immediate effect.
"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."
Green - who recently apologised after being charged by the Scottish Football Association for allegedly using "racist and offensive language" over comments made in a newspaper interview - felt it was in the best interests of the club to leave his position.
He 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."
- Sports & Recreation