Rangers have put an end to confusion surrounding the future of manager Ally McCoist by confirming that the 52-year-old has resigned and is serving a 12-month notice period.

In a statement to the Stock Exchange, the Gers also announced that the former Scotland international striker’s salary will now increase to £750,000 a year.

The statement added: “The directors will hold discussions with Mr McCoist to seek an amicable solution in the best interests of the company, and expect to be in a position to make a further announcement before the end of the week.”

McCoist said on Friday after watching his side lose 2-0 defeat at Queen of the South that he would be the Gers boss for the foreseeable future, although it was understood at the time that he had offered his resignation earlier in the week.

McCoist had been assistant manager at Ibrox under Walter Smith and was named as the Gers boss in the summer of 2011 when the club were still in the Scottish Premier League.

After Rangers were relegated to the fourth tier of Scottish football for financial reasons, McCoist led the club to two consecutive league titles but they are currently nine points behind leaders Hearts in the Championship.

Rangers remain in financial turmoil and annual accounts recently revealed that £8million in new funding is required in January to keep the business going for the next 12 months.

Earlier this month Rangers lost 3-2 to Alloa Athletic in the Scottish Challenge Cup and they have also been beaten by Hibernian and Hearts, twice, in the league.