The 34 year-old, who was a free agent after being released by Vancouver Whitecaps in May, has agreed a one-year-deal with the option of a further year's extension.
Miller was Rangers' leading scorer when he chose to sign for Bursaspor in January 2011 after talks with a view to extending his deal beyond that summer broke down. After becoming Ally McCoist's first signing ahead of next season's SPFL Championship campaign, the striker last night revealed he did not want to move to Turkey but felt he had little choice in the end. And he expressed his relief and delight he was back at the Ibrox club again.
"To be honest I've said a lot in the past that I've tried to have no regrets in my career but that is probably the one I look back on," he said.
"Different things were in the decision-making process there and, without going into too many details, it was made clear to me that the contract I felt I deserved at that time wasn't really going to be on the table.
"I remember the Wednesday night that it was confirmed that I was going. I think we were playing Inverness at Ibrox and if you spoke to my wife she'd tell you I was in the car with a tear in my eye. I knew I didn't really want to do it. I could have had 40 goals at the end of that season. The way things were going and the way the team was playing there was a big chance I could have finished with a lot of goals that year.
"It would have been great but we just felt rather than waiting until the end of the season - and the way it was looking was that I would have had to move on anyway - we thought it was the time to move then.
"That is definitely a regret I have and probably since the minute I left this club and within a few months of leaving I've been trying to come back. This place is massive for me and like I said before it does feel like I'm coming home now."
Miller revealed it had always been his wish to return to Rangers when it became apparent that his time in Canada was coming to an end.
"It's been a long time coming and it's no secret I've been trying to come back for probably a few transfer windows now," he told the Rangers website. "So to get back now and play a part in what will be a tough Championship next year is great. That's an understatement and I've not had the smile off my face since I knew it was going to happen.
"It was always my first choice but in football you can't pick and choose where you go. I've just been fortunate enough that there's people in charge that still believe in me and still want me to come back and play a part in their squad."
McCoist was pleased to get the deal over the line. "We are delighted to welcome Kenny back to Ibrox," said the Rangers manager. "He was a terrific player for us in the past, especially his second spell at Rangers, and we have won many trophies together.
"Kenny brings experience and pace to our forward line and will be a great influence on our younger players. He is a top class footballer and we look forward to seeing him in a Rangers jersey once again as we look to secure promotion to the top flight next season."
Meanwhile, the chances of Kris Boyd being reunited with his former strike partner look slim after he revealed he had not spoken to Rangers. The forward, who is out of contract at Kilmarnock, is the subject of interest from Aberdeen and Dundee United but plans on taking his time before alighting on a decision regarding his future.
"There's been interest registered by them but there's been interest from numerous clubs," he said.
"I've had a brief conversation with Kilmarnock but I've not heard anything from Rangers. I've not spoken to them. I want to take my time and make a decision that's right for me and my family."