Police Scotland have found "no criminality" in a video posted on social media which they had earlier stated appeared to show Rangers players allegedly using "sectarian language" during last weekend's title celebrations.
An investigation was launched after TikTok footage emerged of players and others singing inside a function suite after Rangers collected the Scottish Premiership trophy.
A police statement on Friday said: "In relation to a video circulating on social media showing Rangers players allegedly using sectarian language on Saturday 15 May, extensive enquiries have been carried out and no criminality has been established."
Rangers welcomed the news but are taking other action.
A club statement read: "Rangers welcomes the outcome of the Police Scotland investigation into a video involving some of our players and staff.
"Whilst we were confident that no criminality took place, we recognised that we had a duty to assist police.
"Furthermore, given some of the attempts to spread false narratives, we had to protect the reputation of individuals involved.
"This is a stark reminder to those in senior positions within society who should be cognisant of their influence, responsibility and the consequences of their actions on others.
"We can confirm that we have initiated legal proceedings against certain individuals for comments made this week."
Reporting by PA