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Dailly deal done
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30 January 2008
The 34-year-old leaves West Ham after falling out of favour with the Barclays Premier League club.
Rangers have taken over his contract, in a similar move to their capture of David Weir 12 months ago.
Dailly has won 66 caps for Scotland and effectively replaces Ugo Ehiogu in Walter Smith's squad. Ehiogu moved to Sheffield United earlier this month.
Dailly can fill several defensive roles or could be deployed as a holding midfielder by Rangers.
Former Scotland manager Smith knows Dailly well from his spell in charge of the national team.
The new Ibrox arrival began his career with Dundee United before moving to Derby in 1996.
He was a £5.3million signing by Blackburn in 1998 and moved on to West Ham in 2001.
A loan spell with Southampton earlier this season was an indication Dailly was becoming surplus to requirements at Upton Park and he will hope for more involvement with Rangers.
Dailly was included in new Scotland boss George Burley's first squad, ahead of a training get-together which will take place from Sunday to Tuesday.
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