Rangers lost 2-1 in Lithuania to FBK Kaunas, the team sponsored by Hearts owner Vladimir Romanov's bank, Ukio Bankas, in the second qualifying round for Europe's elite competition.

Walter Smith's side were UEFA Cup finalists less than three months ago but will not be parachuting into that competition this season, with no places allocated to teams exiting the Champions League at the second qualifying round stage.

"I really can't believe it," said McGhee, whose own team will begin their UEFA Cup campaign next month.

"I didn't think Rangers would have an easy time over there but I just couldn't envisage them going out tonight.

"It's unbelievable. It puts a dampener on everyone."

McGhee told BBC Five Live: "Scottish football looks forward to Celtic and Rangers' Champions League campaigns, the TV, the nights at Ibrox and Parkhead.

"For them to be robbed of that immediately it just lessens the whole season ahead."