Rangers' Champions League hopes were left hanging in the balance after this home defeat. Daniel Larsson scored the only goal of the first leg of the third qualifying round tie, leaving the Scottish champions with a major hurdle to overcome in next week's away leg.

It was another frustrating encounter for Ally McCoist, with the new Rangers manager still to secure his first competitive victory at the helm.

Lee Wallace was given his Rangers debut, while David Weir made his first appearance after missing Saturday's Scottish Premier League opener against Hearts through suspension. They replaced Kirk Broadfoot and Juan Manuel Ortiz.

Malmo looked dangerous from the start and Allan McGregor had to block a ferocious shot from the right flank from Wilton Figueiredo, before Jimmy Durmaz blasted the rebound past the post.

Rangers failed to heed the warning signs and the Swedish side took the lead after 18 minutes. The move began when Steven Whittaker was robbed of possession by Durmaz and the ball was eventually laid on by Figueiredo to Larsson, who sent an unstoppable drive past McGregor.

Rangers made their first change with half an hour gone when Weir was replaced by Ortiz, with Sasa Papac moving into the centre-half position vacated by the captain and Wallace dropping back to left-back.

Figueiredo then picked up the first booking of the game for handball and Steven Davis saw his resultant free-kick palmed to safety by goalkeeper Dusan Melicharek as Rangers headed into the interval to the sound of jeers from the crowd.

The mood was lifted at half-time when new signing Dorin Goian – unable to feature in tonight's the game as he awaits a work permit and international clearance - was paraded on the pitch to enthusiastic applause during the break.

Rangers were on the back foot soon after the interval too. Papac was cautioned for tripping Larsson before Figueiredo's curling free-kick was tipped one-handed over the crossbar by McGregor. Agon Mehmeti then sent a header flashing narrowly wide of the upright from the corner.

Lee McCulloch was not too far away with a deflected shot from distance but McGregor was forced to come to Rangers' rescue again when he denied Figueiredo, who was allowed to run unchallenged before unleashing a shot. The goalkeeper was also alert to block a free header from Daniel Andersson.

Rangers should have been back on level terms when Nikica Jelavic whipped a tempting ball into the path of Steven Naismith, who should have buried the shot from close range, but he connected on his weaker foot and miskicked wide.

Naismith had the chance to make amends just moments later in a carbon copy of the previous move but the finish was just as poor the second time around.

It was proving to be a busy night for McGregor, and the Rangers goalkeeper did well to block from Jiloam Hamad in the final minutes of the match and keep his side's hopes of progression alive, for now.