The withdrawal places the future of the 140-year-old club back in the balance three months after going into administration. Miller said opposition to his takeover among Rangers fans had been a factor in his decision.
"We can confirm that Mr Bill Miller has decided not to complete his purchase of Rangers Football Club," joint administrator David Whitehouse of Duff & Phelps said in a statement.
"We have been informed by his advisors that there were a number of issues with which he felt uncomfortable including legacy contracts, the limitation of potential revenue streams and the expectation of required investment."
"There is every opportunity for these bidders to now complete the purchase of the Club prior to the end of the season," he added.
In a statement carried by British media, Miller said that the financial situation of the club appeared to be worse than he had expected and that he was unhappy with the fans' reaction.
"After hearing the message from Rangers supporters and fans loud and clear ("Yank go home!"), I notified the administrators today that I have withdrawn my bid for Rangers and will not be moving forward," Miller said.
