UEFA has ordered Rangers to close part of Ibrox for the second leg of their Europa League play-off tie against Legia Warsaw.
European football's governing body has ruled that a number of Gers fans were guilty of racist behaviour - which includes sectarian chanting - during the match against St Joseph's of Gibraltar on July 18.
Rangers will now have to close off at least 3,000 seats for the visit of the Polish side on August 29 on UEFA's orders, with the affected area to be confirmed in due course.
A statement published on the club's official website read: "Our supporters have been asked repeatedly by the club to refrain from indulging in [racist behaviour], and other forms of unacceptable behaviour.
"Sadly, the warnings have fallen on deaf ears and the actions of this minority will cause the club and the majority of good and decent Rangers supporters to pay a heavy penalty."
The club has confirmed that a significant number of supporters - "innocent of any wrongdoing" - will miss next week's match.
The statement continued: "This is deeply regrettable to all at the club and we hope that the guilty parties who attracted the attention of UEFA might reflect on the damage their unacceptable behaviour is causing Rangers and their fellow supporters".
Ibrox chairman Dave King added: "Rangers is a club open to all and we will continue to convey this message at every opportunity through our Everyone Anyone initiative.
“Rangers has players and supporters from many religions, cultures and backgrounds but we are one and the same when we gather to support our club.
"If any supporter cannot accept that then Rangers is not the club for them”.