Rangers have beaten Celtic and several English clubs to the signature of Kevin Thomson after paying Hibernian £2m for the midfielder.
The 22-year-old has signed a four-and-a-half-year contract with Walter Smith's Glasgow club.
He becomes manager Smith's fourth signing since returning to Ibrox.
Thomson told Rangers' website: "As soon as it came to the table that I had the option of playing here then I didn't need any other options."
He had lost the captaincy at Easter Road after he and midfield partner Scott Brown fell out with the club over the terms of their new contract.
"There's been a lot speculation surrounding my future in recent weeks, but I'm just delighted to be here," Thomson told Rangers' website.
"It's a massive club. As a boy, you always dream of playing for a big club like Rangers as it is the pinnacle of Scottish football."
"It's looking like he will be staying at Hibs this time, but I would be over the moon if he were to join me at Rangers"Brown had also interested Rangers after asking for a transfer from Hibs.
The Edinburgh club have stated that "no deals have been concluded" regarding Brown's future and that he would not be leaving during the January transfer window.
But Thomson, who moved clubs after both named in Alex McLeish's Scotland B squad for the forthcoming international against Finland, said: "I would love to see Scott come here.
"It's looking like he will be staying at Hibs this time, but I would be over the moon if he were to join me at Rangers."
Celtic had three bids for Thomson and Brown rejected by Hibs, while West Brom and Charlton also had failed offers for the pair.
And Hibs manager John Collins had insisted that they would both remain at Easter Road until the summer.
But, following Rangers' latest offer, Collins told his club website: "I have been fully involved in the discussions and I am happy that our valuation has been matched for the player.
"I am confident that we have a squad that is well capable of competing in the important games that lie ahead and that we can continue the good run of form till the end of the season."
Meanwhile, Hungary striker Thomas Sowunmi, a free agent after leaving Slovacko in the Czech Republic, appears to have failed to win a deal with Hibs.
The 29-year-old, formerly of Ajaccio, had been on trial at Easter Road but is now attempting to impress at Luton Town.