Rangers sporting director Ross Wilson says the Ibrox club fended off elite European interest to secure the services of James Sands.
The American international arrives in Glasgow from New York City FC on an initial 18-month loan deal and there is an exclusive option to buy clause for Rangers.
He is Giovanni van Bronckhorst's first signing as Ibrox boss and Sands' versatility means he can play in both defence and midfield.
The 21 year-old was integral in last season’s play-off campaign which saw NYC defeat Portland Timbers to win the MLS Cup for the first time in their history.
Wilson says several qualities convinced him and Van Bronckhorst that Sands was a key target.
Speaking to the Rangers website, he said: "Naturally we faced competition from some excellent European clubs to sign James.
"I am delighted that he shares our belief that Rangers is the next step in his exciting journey.
“Aside from his qualities with the ball, his versatility and tactical understanding, we also know that James is a brilliant character, positive personality and despite his young age, is already showing impressive leadership qualities.
“Our scouting team has tracked his strong evolution over the course of the season with the MLS Champions New York City and we have identified a lot of potential in James.
"Gio has looked closely at what he can bring to Rangers and I know working with the manager and our staff, James will develop his game further here.
"Signing James is a really interesting opportunity for us, and one we are all excited about.
"We reached agreement a couple of weeks ago for the transfer to be structured as a loan for this season and next, whilst we have negotiated and secured an exclusive option to buy beyond the initial loan period."
Van Bronckhorst added: "James is a player who I have been aware of for some time.
"His versatility was a big attraction and I’ve been impressed with his attitude and mentality in the games that I have watched recently.
"He is a talented young player with areas of his game which we will endeavour to develop through our coaching. I am looking forward to getting him onto the pitch and starting to work with him.”
Sands meanwhile says it's an exciting step to join one of British football's household names
He said: "I’m very excited to be joining Rangers football club. It is an incredible opportunity for me to join a club with such a winning history and worldwide fan base.
“Additionally, I’m looking forward to joining an ambitious and talented group of players and coaches. I am certain that Rangers will progress me as both a player and as a person."
