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Graeme Murty has agreed to resume his academy role at Rangers just five weeks after being sacked as interim manager.

The 43-year-old returned to Auchenhowie on Tuesday to rubber-stamp his decision to step back into his post as boss of the Light Blues development squad.

Murty was “relieved of his duties” after a humiliating 5-0 hammering by Old Firm rivals Celtic and wanted time to reflect on his future but Record Sport understands new boss Steven Gerrard has sanctioned Murty’s plan to be at the club next season.

It completes a remarkable u-turn for the youth coach who had been handed the challenge of leading the first team after Pedro Caixinha’s dismissal in October.

(Image: SNS Group)

Murty’s turbulent spell in charge came to a head when Rangers lost 4-0 to Celtic in a Scottish Cup semi-final in April, with Kenny Miller and Lee Wallace both suspended after rounding on the stand-in gaffer inside the Hampden dressing room.

That was followed by a five-goal destruction at Parkhead that proved to be the last straw for Ibrox chairman Dave King.

Meanwhile Carlos Pena says Caixinha knew about his alcoholism – yet signed him for the Ibrox side then took him on loan to Cruz Azul.

The Mexican midfielder, now at a rehabilitation clinic, said: “Caixinha knew about my issues, we were together for six months in Scotland so he was aware about my situation.”