The Scottish Sun reports that the 18-year-old will soon put pen to paper on a deal which has been in the works since the end of 2019.
It initially seemed that Kennedy would be on his way out of Ibrox this summer after the two parties failed to agree on the terms of the contract.
However, since impressing for Inverness Caledonian Thistle in the Championship this season, Rangers have finally managed to reach an agreement with the Scotland youth international.
Once the ink is dry, he is expected to head out for a second loan spell this campaign by joining John McGlynn’s high-flying Raith Rovers side.
ICT boss John Robertson had been hoping that he could keep Kennedy in the Highlands for the remainder of the season after he impressed across his 10 appearances at the Caledonian Stadium.