Dunfermline 3 Rangers 2: Rangers crashed out of the Scottish Cup to Stephen Kenny's Dunfermline, despite a remarkable fightback at East End Park.

A Kris Boyd double in the second half gave the Gers hope but goals from Jim Hamilton, Stephen Simmons and Phil McGuire ensured it would be Dunfermline's name in the fourth round draw instead.

Ibrox chairman David Murray is expected to unveil Walter Smith and Ally McCoist as the new management team at the start of the week.

But the 'dream team' appointment comes too late to salvage domestic silverware for a Rangers team plunged into turmoil this season.

It was a dramatic start to the New Year for Rangers when it emerged Barry Ferguson had been stripped of the captaincy and dropped for Wednesday's SPL game at Motherwell.

The win proved to be manager Paul Le Guen's last match in charge and he parted company with the club 24 hours later.

Youth coach Ian Durrant took charge of team affairs for the trip to Dunfermline and he reinstated Ferguson to the first team, albeit minus the skipper's armband which remained with Gavin Rae.

Dunfermline took the lead with 17 minutes gone when Owen Morrison released Hamilton into the box and he stabbed home from close range.

Rangers could have fallen further behind when O'Brien met a Scott Morrison corner and bulleted a header towards goal only to be denied by a decent save from McGregor.

But Dunfermline had the net bulging again after 29 minutes. A Simmons effort was blocked by Svensson but he was allowed another crack at goal and this time successfully poked home from 12 yards.

Rangers endured the worst possible start to the second half when they found themselves further behind within a minute of the restart. McGuire added his name to the scoresheet when he rose above everyone else in the box to nod home a Scott Morrison corner.

However, Rangers pulled a goal back with 54 minutes gone when Rae's cutback was met by Boyd and he rifled home from 12 yards.

The Ibrox club made another change just after the hour when they replaced Adam with Thomas Buffel, while Dunfermline swapped Owen Morrison for Calum Woods.

Boyd threw Rangers another lifeline when he met an Ian Murray cross to nod home from a few yards out with 68 minutes on the clock.

Ferguson's header then crashed off the crossbar before Boyd slotted just wide of the post as the Ibrox side pushed for the leveller.

However, it was too little, too late as Dunfermline held on for the win and Rangers' last real hope of silverware vanished.