The Scottish champions are out of Europe's biggest club competition after losing the second leg of their tie to the Swedish champions
Innocent Bonke saw red, but Malmo still sealed qualification into the Champions League playoff round following a 2-1 win over Joe Aribo's Rangers at the Ibrox.
Rangers went into the clash needing to overturn a 2-1 deficit after losing the first leg in Sweden last week. Aribo, who missed the game last week, featured from the start along with his compatriot Leon Balogun, while Bonke was also in Malmo's lineup.
The Gers started on the front foot, knowing they needed to win by two clear goals to progress. Alfredo Morelos put Steven Gerrard's ahead in the 19th to send the Ibrox crowd into excitement.
It even got better for Rangers as Malmo had Bonke sent off after he was booked twice in the space of four minutes.
However, the Scottish champions could not make their man advantage count after the break, with Malmo flipping the script.
The Swedish champions drew level in the 53rd minute through Antonio-Mirko Colak, who finished off a Veljko Birmancevic assist.
Four minutes later, the Croatian international scored his second of the game to put the away side ahead and in the driving seat.
Rangers poured forward in numbers for an equaliser and a winner to send the tie into extra-time, but Malmo held on for a famous win and a place in the playoff round.
