(CNN) -- The English Premier League has rejected a proposal to bring Scottish Premier League sides Celtic and Rangers into English football's top flight.
The Glasgow-based sides, who have dominated their own league both competitively and financially in recent years, had hoped to be part of plans submitted by Bolton chairman Phil Gartside who is keen on a two-tier league of between 36 and 40 teams.
Both Celtic and Rangers would have been invited to join the lower of the two leagues under the plan, but the proposal was overwhelmingly rejected.
English Premier League clubs will now consider whether to introduce a two-tier system as part of a wider strategic review.
A statement from the Premier League said: "Bolton Wanderers submitted a discussion paper detailing ideas concerning the restructuring of the Premier League into two tiers with the inclusion of Celtic and Rangers.
"The clubs welcomed the additional input into an ongoing process, however, they were of the opinion that bringing Celtic and Rangers into any form of Premier League set-up was not desirable or viable.
"The other relevant ideas contained within Bolton's paper will now be taken forward as part of the wider strategic review being undertaken by the Premier League since November 2008 with the aim of providing recommendations before December 2010."
The rejection comes as Rangers revealed that they made a loss of nearly $22 million last year, compared with a profit of $11.3m the previous year.
Rangers are currently seeking new owners, with former chairman David Murray keen to off-load his controlling stake.
The club have also been hit by a fine by governing body UEFA for crowd trouble during their Champions League match against Unirea Urziceni on November 4 in Romania.
Rangers have been fined $30,000 for the behaviour of their supporters while Romanian outfit have been hit with a fine of around $12,000 for their organisation at the Group G clash.