Rangers have stripped Barry Ferguson of the captaincy in the wake of the controversy on international duty with Scotland.
Ferguson and Allan McGregor were sent home from training on Friday and will not be involved in this weekend's clash with Falkirk.
The pair were dropped by George Burley for Scotland's World Cup qualifier at home to Iceland on Wednesday after being caught in an extended drinking session following the defeat to Holland last weekend.
Both players created more controversy after they were photographed appearing to flick the 'V' sign during Scotland's win over Iceland and for that reason Rangers have decided to punish them.
Gers boss Walter Smith has confirmed Ferguson will not skipper the side anymore with David Weir taking the armband for the rest of the season. He also suggested the club's action was prompted by the gestures made by the former skipper while on the bench during the Iceland game.
"We were unhappy about that situation but that was something for George [Burley] to act on," said Smith.
"The more disappointing aspect for us was the subsequent action on the bench on Wednesday night.
"From the club's point of view, that was not a good image to project."
Rumours have suggested Ferguson and McGregor could be transfer-listed by the club and Rangers are set to make a further announcement on the matter later on Friday after a meeting with both players.