The club's fans had called for Light Blues supporters to boycott the match and Rangers' chief executive Charles Green had already said it would not take its allocation of tickets for the February game in protest at the Tannadice club's previous dealings with them.
Now Mr Green says any money due to the club will be going to the Brick by Brick Appeal to build a new Prince And Princess Of Wales Hospice in Glasgow and Erskine, the charity that helps former servicemen and women.
Mr Green said: "The club was contacted by Dundee United requesting us to waive our rights to the share of the gate under Cup Competition Rule 46(c). This was declined.
"It has been decided by the board that any proceeds from gate receipts due to the club will be donated to the Prince And Princess Of Wales Hospice Brick By Brick Appeal and Erskine charities via the Rangers Charity Foundation."
Mr Green had previously said feelings at the club remain "very raw" over the actions of SPL clubs that "were actively engaged in trying to harm Rangers" when the club was in administration earlier this year.
The latest development in the row came as Ibrox legends turned out to support the club as it gears up to celebrate the 140th anniversary of the founding of 'oldco' Rangers.
Former defenders Richard Gough and Colin Jackson and strikers Mark Hateley and Derek Johnstone took part in a photocall at the Hilton Garden Inn in Glasgow for an early preview to tomorrow's 140th anniversary celebrations, when Rangers host Stirling Albion in a Third Division clash.
Legends from the club's past will join modern day heroes at Ibrox as the club marks the formation of the club in 1872.
how to help
THE Prince And Princess Of Wales Hospice in the Gorbals, Glasgow, wants to build a new hospice on a proposed site next to Bellahouston Park.
Our Brick By Brick campaign needs to raise £15million to help build it.
Send donations, made payable to The Brick By Brick Appeal, to: The Prince & Princess Of Wales Hospice, Freepost SCO1724, Glasgow, G5 9BR.
You could even organise your own fundraising event. Whatever you do, tell us about it!