The 34-year first joined the Ibrox club from Hibs for the 2000-2001 campaign and returned between 2008 and 2011.
Following time at Cardiff and Vancouver Whitecaps in Canada, he now joins up for a third spell at the club, where he has scored 67 goals in 147 appearances.
Miller told the Rangers website: "I am thrilled to return to Rangers for a third time. I have enjoyed so much success at this great football club and I am determined to repeat it again next season and beyond.
"Rangers is a special football club and we are on the rise again and I want to play my part as we look to get back to the top of Scottish football. I had a number of offers once I left Vancouver but I had my heart set on returning to Ibrox and I can't wait to get started again."
Rangers manager Ally McCoist said: "We are delighted to welcome Kenny back to Ibrox. 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 at Murray Park. 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."