Ally McCoist has quit as manager of troubled Scottish Championship club Rangers, it announced Monday.

McCoist, a former Rangers player who had been in charge for two years, quit after media reports said he was set to resign amid growing pressure from fans of the former Scottish giants.

"The Company announces that Alastair McCoist, manager of the first team squad, has resigned," Rangers said in a statement to the London Stock Exchange.

Rangers currently play in the second tier of Scottish football.

They were relegated from the top flight Scottish Premier League, which they had dominated with Celtic for years, to the fourth tier in 2012 as punishment for major financial problems.

McCoist, who took over in 2011, has faced pressure from fans and the club to return Rangers to the top flight but the club is lagging second in the table behind Hearts this season.

The Glasgow club still faces cash problems after reporting an £8.3 million (10.5 million euro, $13 million) operating loss last month and needs to raise the same amount by the end of this financial year.

A 12-month notice period in McCoist's contract has now been triggered and the club is set to negotiate the timing of his exit.

In the meantime, the former star Rangers and Scotland player's pay will increase to £750,000 per year.

McCoist's last game in charge was a 2-0 defeat by Queen of the South on Friday.