The 30-year-old striker completed his medical at Murray Park this morning, setting him up for a second spell with the Light Blues having previously signed for the club from Kilmarnock in January 2006.
Boyd snubbed offers from Dundee United and Aberdeen to return to Ibrox.
He said: "I'm thrilled to be back, I'm a Rangers fan and I know everything about the club. I'm really looking forward to the new season and it will be a tough but exciting challenge.
"In football it's strange because you never know what can happen but as soon as I knew there was a bit of interest in me from Rangers there was only one place I was going."
Manager Ally McCoist said: "We're delighted to announce that Kris has signed a one-year deal with us this morning.
"We've been speaking to him for a few days now and he obviously showed a great desire to come back and we were very keen for him to come back. It's great news for the club."
In four-and-a-half years at Ibrox, Boyd netted 101 league goals in 143 appearances under Alex McLeish, Paul Le Guen and Walter Smith, a record which helped him become the SPL's all-time leading scorer. He won two Scottish Premier League titles, two Scottish Cup and two League Cup winners' medals.
With 18 caps and seven goals for the Scotland national team, he left Rangers in the summer of 2010 and went on to play for Middlesbrough, Nottingham Forrest on loan, Eskisehirspor in Turkey and MLS side Portland Timbers before returning to Kilmarnock in February 2013.
Boyd who enjoyed a good season at Rugby Park in 2013/14, netting 22 goals to help Killie retain their Premiership status, and was on the shortlist for the PFA Player of the Year award.