Mark Warburton’s side take on League One club Peterhead in the showdown on April 10, 2016. Kick off will be 3pm and the match will be shown live on BBC Alba.
It represents the first time Scotland’s national stadium will host the final, which traditionally moves around dependable on the location and size of the clubs in the final.
The Ibrox side wanted the match at Hampden to allay fears about fans being unable to secure tickets at a smaller venue.
McDiarmid Park hosted the final last season, which took place between Livingston and Alloa Athletic in front of 2,869 fans. Livingston won the match 4-0.
Rangers were last in the final two seasons ago when they played Raith Rovers in front of a near 20,000 crowd at Easter Road.#
Ally McCoist’s side were heavy favourites to win the match, having gone through the entire League One season undefeated, but were shocked by a John Baird goal in extra-time as the Kirkcaldy club captured the trophy.
Rangers have yet to win the trophy since starting starting life in the Scottish lower leagues.
They were defeated 3-2 by Alloa last season after leading 2-0, and were knocked out by eventual winners Queen of the South back in 2012/13.
Peterhead will be taking part in their first ever Challenge Cup final. Jim McInally’s side currently occupy the final playoff position in League One, though they were eliminated from the League Cup earlier this season following a 3-0 defeat by April’s opponents.