Walter Smith last night warned Rangers supporters that any repeat of the sectarian singing against FK Zeta tonight will result in them being locked out of Ibrox and barred entry to a lucrative and much-vaunted European Superleague.

The Rangers manager spoke in sobering terms of the "dire consequences" if a minority of fans continue to heap shame and embarrassment on the club away from home. The team flew out to Montenegro yesterday morning along with a specialist team of Rock Steady security stewards, who have been instructed to monitor and quell any unacceptable behaviour among the travelling fans.

Less than two weeks after the launch of the Follow with Pride initiative, Rangers have been reported to the Scottish Premier League by Alan Dick, the match delegate, who noted "F*** the Pope" chants during the 3-0 defeat of Inverness Caledonian Thistle on Saturday.

The club have already been fined in excess of £20,000 by UEFA for two separate incidents of sectarian singing in the Champions League tie against Villarreal and, most recently, the UEFA Cup match against Osasuna. On the eve of tonight's Champions League second qualifying round second-leg tie against FK Zeta, Smith warned the travelling fans the club's future livelihood is in jeopardy at home and abroad.

He is convinced a European league will be formed in the next few years and believes Rangers' debit with UEFA could remove their invitation to the lucrative set-up.

"The long-term consequences are far greater than the short-term, and they are bad enough," he said last night. "We have been left so far behind on a financial basis, but there will be a change at some stage.

People keep saying the Premiership, but I do not see that the Old Firm will ever be accepted there.

"More likely, in my own mind, is a European league. Rangers' situation at the minute means they will probably be unacceptable to the new league and the consequences of that will be far-reaching. If we are not in a position to join when it is formed - and it will be formed - the consequences are dire and that's what these fans are hindering."

UEFA confirmed that they will be represented in Podgorica by the Belgian observer, Jean-Marie Philips. Having fined them £13,300 for crowd disturbances in Villarreal and a further £8520 for sectarian singing in Osasuna, Smith is convinced the governing body will carry out their threats to the letter if Rangers are sanctioned for a third time.

"It's not a nightmare scenario," he said. "If it happens, it might show these fans what else could happen. The next time UEFA are not going to fine us as they did before; they are going to close the stadium. If fans cannot go to the stadium then these people might come to their senses.

"The club is doing as much as it can. We have had a reaction from an awful lot of people but it is the minority of fans who are putting this club in danger with these songs. I cannot exaggerate it."

Dick's report will be reviewed today at Hampden Park and could be passed to an independent arbiter for further investigation. If found guilty, the club are likely to receive a first warning under the new charter. A repeat of the problem will lead to a fine and, ultimately, the docking of points if the behaviour does not improve.

"Ally has mentioned it before, I have mentioned it before and we will continue to do so," said Smith. "I believe that the vast majority are taking it on board and are aware of the consequences. I do not think the consequences are as much domestic as in Europe with UEFA keep to stamp it out. Rangers are one of the clubs that will be at the forefront of any action when you consider the recent history with Osasuna.

John Macmillan, general secretary of the Rangers Supporters' Association, said: "The sad thing now is that the spotlight on tomorrow's match will not be on the efforts on the pitch, it will be on what the heck happens off the pitch.

"It's very sad when that happens in football. These people are just making it difficult for the club and making it easy for critics of Rangers to point the finger. I think it's very, very disappointing that this element doesn't seem to listen to common sense and it suggests to me that they've got nothing up top'. It's unacceptable behaviour and bringing the club into disrepute."