But he felt the Croatian’s exit from Ibrox was best for both parties.
The former Portsmouth, Tottenham and QPR player suffered cruciate ligament damage 15 games into his Rangers career last season and struggled for fitness during spells this term.
And with Rangers’ squad increasing in size during the transfer window, Kranjcar’s last game for the club came on January 31 during a William Hill Scottish Cup win at Fraserburgh, before his contract was terminated by mutual agreement last week.
Murty told RangersTV: “Niko has been a top professional and has worked extremely hard. He obviously hasn’t had the best of time with injuries, but we have made the decision, mutually, to go our separate ways and we wish Niko all the best.
“Personally, for me, he has been really good to work with and is a good guy to have around.
“Technically, he is possibly the best player I have seen up close as a coach, but we just thought it was appropriate, and respectful to him, to allow him to seek out that next challenge.”