10 SPL clubs voted against the reformed Glasgow club playing in Scotland's top flight after they fell into liquidation following financial misdemeanours over the years.
With an almost unanimous ruling against Rangers, the Ibrox outfit will now seek an application for the SFL despite Green admitting the clubs dissatisfaction at being denied the chance to play in the SPL when things appeared to change on the weekend.
"We are deeply disappointed that our application to rejoin the SPL has been rejected," said Green who is prepared to go as far down as the Third Division with the club.
"This time last week all of us at Rangers were resigned to the fact we'd not be admitted.
"At the weekend we were approached by representatives from the SPL suggesting our application still stood a chance of success and we should discuss this further with clubs. This we did in good faith but with the knowledge of the hurdles that lay ahead of us.
"We had asked the SPL whether it would be more appropriate for us to withdraw our application but were advised against this.
"We made a presentation to the SPL clubs this morning, detailing our proposals.
"Sadly this was rejected and we regret that our club and our supporters were given false hope by this initiative."
He added: "If our application were to be accepted, Rangers will play in whichever division the SFL sees fit."