A 12-month notice period was triggered when McCoist – the Ibrox outfit’s all-time leading goalscorer – fell out with the previous administration running the club last season as his side’s promotion bid faltered. He was placed on gardening leave just hours before a stormy annual general meeting but has continued to pocket his £15,000-a-week salary. King – who took over as Ibrox chief in March – held talks with the 52-year-old earlier this summer and has now been able to agree a deal to terminate McCoist’s lucrative contract “on commercial terms which are favourable to the club”.
King said: “Yes, it has been agreed with immediate effect.
“It’s nice to have it behind us in the sense that there seemed to be an issue. I think I said repeatedly – there shouldn’t really be an issue. Our view has always been that Rangers Football Club has had a contract with Ally McCoist.
“Ally very generously previously worked for free during a difficult time for the club. He then worked for half-price during a difficult time for the club.
“He then moved on and had every right to enforce his contract. It was obviously developing as an issue and I reached out to Ally on my last trip to Scotland at the end of July and said, ‘Listen, Ally – shouldn’t we be sitting down and seeing if we can’t do something here?’
“He was very receptive, very open to that. He chatted to me about some issues I wasn’t aware of such as the labour legislation. I said: ‘Ally, that’s fine. Go find out all the things you need to know. Let’s figure it out, let’s stay in touch and when I’m back again on this trip let’s get together and see if we can reach an agreement’.
“We met [on Wednesday] and reached agreement in about four or five minutes. We’re delighted that Ally has been generous enough to agree to the termination of the contract on commercial terms which are favourable to the club.
“I don’t know if he’s got another job to go to. I heard there is a possibility of that.
“But my real focus was on the Rangers situation. Could we do something that recognises the service Ally has given over the years? Ally is a hero, our all-time greatest goalscorer. We look forward to having him and his mum back in the directors’ box. It’s where he belongs.
“I’m pleased it’s now resolved.”
McCoist told the club’s official website: “Without doubt managing Rangers was the greatest honour in my career. It was the dream job but in a nightmare scenario.
“I am absolutely delighted the club now has a stable board and that the good work off the pitch is being equalled by the performances on it.
“Most of all I want to express my gratitude to Rangers fans everywhere. They were superb and they backed me and my staff. They also stood firm when their club was in dire straits and even at the bleakest moments they did not flinch.
“They are the heart and soul of this club and no-one should ever forget that.”