Arfield, who was linked with a move to Ibrox in January and again last month, is the first signing of the Steven Gerrard regime, and the new Light Blues boss welcomed the acquisition of the midfielder.
'He is a talented and competitive midfielder who has competed at a high level in the English Premiership and internationally for Canada.
And the early signs are that Rangers chairman Dave King, who has been criticised heavily be supporters for a perceived lack of investment and ambition, is indeed willing to back Gerrard in his first transfer window as a coach.
With the Premier League season now over, Burnley have given the green light for Arfield to be announced as the first signing of the Steven Gerrard era.
Arfield's contract with Burnley was set to expire at the end of June, with Burnley hoping to persuade him to stay.
Mainly a central midfielder, Arfield has been with Burnley for the past five seasons and played a key role in helping them gain promotion to the Premier League and also to secure European football for next season.
Despite making his way through the youth ranks with the Scotland national team, Arfield represents Canada internationally, with his father having been born in Toronto.
"When you look at the style of football that Jurgen Klopp plays, I think every fan in the world loves watching that", Gerrard said in a Question and Answer session in Dubai as part of a Liverpool club function. If you don't get excited by it you shouldn't walk through the front door. "[His appointment] has given a boost to the whole game in this country".