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Former Liverpool and England player Steven Gerrard is being heavily linked with the Rangers manager's job
Murty was only meant to be a short-term fix after being called in as caretaker boss following Pedro Caixinha’s sacking in October but he ended up staying in the post for six months.
Ibrox chiefs, who have been in talks with former Liverpool and England midfielder Gerrard for the past week, say they hope to be able to release details about Murty’s successor “in the near future”.
Gerrard, 37, hung up his boots in 2016 after a 12-month stint with LA Galaxy and now manages the Liverpool under-18s
Rangers’ 5-0 league humbling on Sunday by Old Firm rivals Celtic, who wrapped up their seventh consecutive Premiership title, came just two weeks after a 4-0 drubbing by Brendan Rodgers’ side in the Scottish Cup semi-finals.
Rangers are third in the Premiership table, with only goal difference separating them from fourth-placed Hibernian.
Murty took over on an interim basis for the second time in October before being told in December he would remain in charge until this summer.
Graeme Murty took over as manager of Rangers on an interim basis in October
But two days on from Sunday’s Parkhead mauling, the 43-year-old was called into a meeting with managing director Stewart Robertson to be told he was being sacked.
“Rangers are grateful to Graeme, who did not hesitate when asked last October to become interim manager after the departure of Pedro Caixinha and then, at the turn of the year, when he was offered the role as manager until the end of the season,” the club said in a statement.
“Graeme has had to contend with difficult and challenging circumstances but conducted himself in a thoroughly professional manner. He will take some time to consider his options, which include returning to his role at the Rangers Academy.”
Assistant coaches Jimmy Nicholl and Jonatan Johansson will take charge of the club’s three remaining league fixtures, starting with Kilmarnock’s visit to Ibrox on Saturday.
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