Fraser Aird has been released by Cove Rangers after being pictured appearing to aim an offensive gesture at Celtic fans.
The former Rangers midfielder was in the away end at Parkhead to watch Steven Gerrard's side triumph 2-1 over their rivals on Sunday.
And Sky Sports TV pictures captured the Canada international making a "w****r" sign as Rangers fans celebrated their victory.
The League Two leaders have now announced Aird, whose deal was set to expire at the beginning of January, has instead been moved on "with immediate effect".
A statement said: "Cove Rangers FC is aware of an image which is circulating relating to one of our players at the recent Celtic v Rangers match.
“As a club we do not condone such behaviour and expect all of our players to represent our club in the correct manner at all times.
“Fraser Aird’s contract with the club was due to expire at the start of January and as a result he will be leaving the club with immediate effect.”
Cove sit top of the fourth tier and are currently managed by former Celtic, Hearts and Scotland star Paul Hartley.
