Rangers have dismissed manager Graeme Murty in the wake of Sunday's 5-0 battering at the hands of Old Firm rivals Celtic, potentially paving the way for Liverpool legend Steven Gerrard to take over at Ibrox. Murty was initially installed as interim boss in October following the sacking of Pedro Caixinha, before being handed the role until the end of the campaign in December. However, the 43-year-old has paid the price for the heavy defeat to Celtic, which came just two weeks after a 4-0 hammering at the hands of their rivals in the Scottish FA Cup, with Rangers confirming he has "been relieved of his duties" in an official statement. Following the loss to Celtic, who won the Scottish Premiership for a seventh consecutive year thanks to the win, reports emerged that Gerrard – who is in charge of Liverpool's Under-19s side – is Rangers' top target to take over for next season. Gerrard has yet to take on a head coach or managerial role, having reportedly rejected the chance to take over at MK Dons following his retirement as a player in 2016, while he has also been linked to the vacancy at Ipswich Town. Club Statement: https://t.co/nJethaX1nY pic.twitter.com/qKsE9wLp7N — Rangers Football Club (@RangersFC) May 1, 2018 Murty's tenure at Rangers has been under severe scrutiny in recent weeks, with Kenny Miller and Lee Wallace having been suspended following an alleged disagreement with the manager in the aftermath of the cup defeat to Celtic. Rangers added that Murty "will take some time to consider his options, which include returning to his role at the Rangers Academy." Former Rangers players Jimmy Nicholl and Jonatan Johansson have been placed in charge of the first-team for the remaining three league games. Rangers are third in the table, three appoints adrift of Aberdeen.