Al-Gharafa have given manager Pedro Caixinha permission to join Rangers.
The announcement by the Qatar club on their Twitter feed confirms the Portuguese coach will head to Ibrox as Mark Warburton’s successer.
He becomes Rangers’ first foreign manager since Paul Le Guen.
Caixinha, 44, is unlikely to be in charge for Sunday’s match against Celtic, with Graeme Murty expected to continue as caretaker boss for one more game.
The Qatar Stars League club stated that the deal was in their financial interests, especially with Caixinha’s contract due to expire in 45 days.
Al Gharafa also added that Caixinha’s desire to join Rangers was instrumental in their decision.
Caixinha emerged as Rangers’ number one choice to replace Warburton last week but the Ibrox club were unable to finalise a deal to take him to Scotland at the start of this week, in time to prepare for Sunday’s derby.
However the agreement with Al Gharafa will allow him to watch on at Parkhead and provide some assurance to players.
Caixinha moved to Qatar in 2015 after a successful spell with Santos Laguna, a Mexican club with close links to Celtic. He previously managed Uniao de Leiria and Nacional in his homeland after spells on the coaching staff at the likes of Sporting Lisbon, Panathinaikos, Rapid Bucharest and Saudi Arabia.