The Leicester midfielder will spend the season at Ibrox.
The 2016 Premier League winner has signed up for Gers title push after being given the green light by former the Celtic boss to make his season-long Ibrox move.
Manager Steven Gerrard admits the Light Blues would have struggled to match the wages the 30-year-old Wales international was earning at the King Power Stadium.
But he paid tribute to the Foxes for making the deal possible after watching his team cruise into the Europa League play-off round after completing a 7-3 aggregate win over Midtjylland.
Gerrard said: “This came very recently. We thank Leicester for the opportunity because you and I know from a financial situation there is no way in the world we can bring Premier League players in here.
“But when this opportunity came up I wanted to get it done and get it done quick because it was a fantastic offer we had to grab. It made total sense in every shape and form.
“I jumped at the chance for numerous reasons. One, he is a winner, a Premier League winner. Two, because he has had numerous caps at international level. Over the course of the last 14 months I have been trying to build a squad but a lot of the guys are very young – they need leadership and guidance in the dressing room. So It was a no brainer.
“He is hungry to play, he got an injury last year which frustrated him a lot. I spoke to him and he understands he has to work hard. But for the club and myself it is positive news.”
Check out a photo of the new Rangers signing watching his teammates from the directors’ box at Ibrox below –