Scottish champions have already missed the chance to play in this season's Champions League after losing their two-legged qualifier against Malmo 2-1 on aggregate.
'Gers were beaten 1-0 at Ibrox by the Swedish outfit last week meaning they required a victory last night but they were unable to overcome their more determined opponents.
Rangers scored first through Nikica Jelavic to level the tie in the 23rd minute despite the fact that Steven Whittaker was sent off five minutes earlier for throwing the ball at Malmo's Wilton Figueiredo after the referee had given a free-kick for a Madjid Bougherra foul on Daniel Larsson.
Ally McCoist's men were then reduced to nine men when Bougherra was shown a straight red in the 66th minute for his challenge on substitute Dardan Rexhepi and it appeared as though they would struggle to maintain their ascendency on the night.
Seven minutes later, however, Malmo had Ferreira Ricardinho sent to the stands for a second bookable offence but it did not stop the home team from producing a winner in the 80th minute through Jiloan Hamad to send the Swedes through to the play-off round and dumping Rangers into the Europa League play-offs.
