"It is with profound sadness that we announce the passing of our former manager, chairman and club legend, Walter Smith," Rangers said in a statement.
Smith is Rangers second-most successful ever manager, winning 21 trophies across two spells in charge.
Already at the club as assistant to Graeme Souness, Smith was appointed full-time manager at Ibrox in 1991 and won seven league titles in eight years to lead the club to a record-equalling nine consecutive Scottish league titles.
After a four-year stint at Everton and a brief spell as Alex Ferguson's assistant at Manchester United, he was appointed manager of Scotland in 2004.
In 2007, he returned to Ibrox, winning three more league titles and guiding Rangers to the UEFA Cup final in 2008 before retiring in 2011.
