 Ferguson and McGregor were shown making V-signs on international duty
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Rangers' Barry Ferguson and Allan McGregor have been told they will never play for Scotland again.
The Scottish FA made the announcement because of a weekend drinking session after defeat by Netherlands and V-signs made on the bench against Iceland.
Rangers had earlier on Friday stripped Ferguson of the team captaincy and suspended the midfielder and goalkeeper McGregor for two weeks without pay.
Veteran defender David Weir has been named the new Rangers captain.
Ferguson and McGregor have apologised for their actions, but their futures at Rangers could also now be in doubt.
The pair had initially been dropped to the bench by Scotland manager George Burley following the early-hours drinking session at the team hotel following the 3-0 World Cup qualifying reverse in Amsterdam.
SFA chief executive Gordon Smith on Thursday backed his manager's action and suggested that the matter was now closed.
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I apologise wholeheartedly for the embarrassment caused to Scotland, Rangers, both sets of supporters and my friends and family
Rangers midfielder Barry Ferguson
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But the governing body's president, George Peat, demanded a further investigation in light of the gestures made by the two players while they were substitutes for Wednesday's 2-1 win over Iceland.
And, following a hectic Friday of meetings and phone calls, further action has been taken by the SFA and Rangers.
"In light of the events of the past 48 hours, and following further discussions between the national team manager and the chief executive, it has been decided that Barry Ferguson and Allan McGregor will no longer be considered for international selection by Scotland," said an SFA spokesman.
"This action has been taken in the best interest of the squad, the fans and the country. We are determined to qualify for the World Cup and we must ensure that nothing is allowed to distract us from achieving this goal."
McGregor and Ferguson had earlier on Friday been sent home from Rangers training and later had a meeting with Ibrox chief executive Martin Bain.
Ferguson, who was Scotland captain and has been capped 45 times, told Rangers' website: "I deeply regret what happened last weekend and the events during the last week and apologise wholeheartedly for the embarrassment caused to Scotland, Rangers, both sets of supporters and my friends and family.
"I have always considered playing for Rangers and Scotland an honour and a privilege and nothing will change that and I am bitterly disappointed by the announcement that I will not be selected for Scotland again."
McGregor, who had made his fourth international appearance in Amsterdam after deposing Sunderland's Craig Gordon, was also contrite.
"We all make mistakes in life and I am very disappointed to have let Rangers, Scotland, my family and all the fans down," he said.
"I am also desperately disappointed that I will not be selected again for Scotland at this stage in my career."
Rangers chief executive Bain said that the two players had brought the club into disrepute.
"The management of the club has taken the view that this has damaged both Rangers and Scotland and is unacceptable," he said.
Rangers lose two of their top players at a time when they are chasing Celtic in the race for the Scottish title, but manager Walter Smith said that action was needed, although the drinking session was not his main concern.
"We were unhappy about that situation, but that was something for George to act on," said Smith.
"The more disappointing aspect for us was the subsequent action on the bench on Wednesday night.
"From the club's point of view, that was not a good image to project."
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