Ferguson was also stripped of the captaincy for the second time in his Rangers career – the first came just before Smith’s predecessor, Paul le Guen, left the club.

The Frenchman struggled to gain control over his players and their habits but Smith insists that has never been a problem since he took charge in January 2007.

The Rangers manager made it clear that the punishments for Ferguson and McGregor – who appear unlikely to play for the club again – were handed out because of their behaviour on the bench during Scotland’s 2-1 win over Iceland on Wednesday.

The pair, who were the focus of attention after being dropped for their part in a Sunday-morning drinking session, appeared to flick V-signs.

Smith said: “I’ve been here a couple of years and if I thought there had ever been that sort of influence, I would have done something.

“It’s not a problem within the group so I did not feel the need to speak to them about this.”

Defender David Weir has backed Smith and the club’s decision to take firm action.

“I don’t think anyone could say the manager is not fair,” said Weir, who has taken over as captain.

“In the cold light of day I don’t think many people will have many arguments with his decision.

“With his track record, he usually comes up with the right decision.

“The boys will be gutted for Barry and Allan because we want them playing here.

“Personally, I can understand the manager’s decision. He has got to do what he thinks is right for the club.”

Meanwhile, Ranger striker Kenny Miller could miss much of the Clydesdale Bank Premier League run-in after seeing specialists about his recurring hamstring problem.

Miller, who played 90 minutes against Iceland, will miss tomorrow’s trip to Falkirk.

“Kenny has been playing with a hamstring injury for most of the season and we hope the specialists have now got to the bottom of it,” Smith said.