The forward joined the club last summer after an impressive season with St Johnstone but, after being duped into contract negotiations by a fake agent, he has been released
The attacker spoke over the phone with someone he believed to be an agent trying to secure him a move to MLS, divulging sensitive information regarding his contract and the fee for which the Gers would be looking in a transfer.
However, it has since been revealed that the person he spoke to was in fact a well-known Celtic fan, with the former Brighton & Hove Albion man even admitting that any interested clubs should come directly to him first before approaching Rangers, a key characteristic of tapping up.
A statement on the club's website read: "Rangers announced today that the club has decided to terminate its contract with Francisco Sandaza. The player has been advised of the situation.
"Francisco spoke at length to someone posing as an agent and engaged in a conversation which the club believes to be a material breach of his contract of employment.
"The player was suspended but after careful consideration and a hearing with Francisco and his representatives, the cClub, and our advisors, believe that dismissal is the appropriate course of action.
"The termination is subject to the right of appeal under SFL rules and there will be no further comment from Rangers on this issue."