Ibrox chiefs have now decided to act with the 47-year-old former Rangers player informed of the decision to part ways during weekend talks. An official announcement from the club is expected on Monday.
Van Bronckhorst took charge of Rangers just over a year ago and led the side to the Europa League final as well as winning the Scottish Cup last season.
Things looked rosy even a few months ago when he steered his side into the Champions League group stages following a play-off win over PSV, but the campaign has quickly unravelled with a 4-0 defeat to Celtic in the first Old Firm match in September followed by heavy pastings in Europe, incuding a 7-1 home loss to Liverpool, earning Rangers the ignominy of the worst-ever group stage record in Champions League history.
On the domestic front, draws with Livingston and St Mirren either side of a defeat at St Johnstone proved the final straw, with Van Bronckhorst now set to be replaced over the World Cup break.