BRIAN Kennedy is no longer in the running to buy Rangers and has urged the club's administrators to opt for a rival bid instead.
It is understood that Kennedy was told by Duff and Phelps that his takeover bid was too low.
He appears unlikely to table an improved proposal after saying he hopes administrators go with another bid tabled by former Ibrox director Paul Murray and his Blue Knights consortium.
Kennedy, who owns Sales Sharks rugby club, was one of a number of parties who had expressed an interest in taking over Rangers, who were forced to call in the administrators on February 14.
A spokesperson for Kennedy said he was "disappointed but not surprised by the outcome".
Kennedy added: "I was only going to get involved for the good of the club.
"I am glad the process is now moving on and I hope the administrators now go with the Paul Murray/Blue Knights bid as they have the best interests of the club and the supporters at heart."
Administrators hope to name a preferred bidder, possibly next week, after recently receiving a fifth offer for the club from a Singapore-based consortium.
As well as bids from Kennedy and Murray's Blue Knights consortium, United States-based Club 9 Sports and a UK-based consortium have also indicated their interest.
Speaking earlier today, Kennedy told administrators they must speed up the process of finding a buyer for the Ibrox club, in order for Rangers to be ready for the challenges of next season.
Kennedy said:: "They need to get a move on, time is pressing on.
"I am pretty much speaking to the administrators on a daily basis, but I am not unique in that, the other bidders are too.
"But for the sake of the club we need to move forward.
"Contracts need to be sorted out, the club needs to know who is going to be playing next season and needs to ensure it has a good, competitive team."