Everton and Thelwell had previously revealed he would be leaving the Premier League club when his current contract finishes at the end of the season.
Thelwell told Rangers’ website: “This is a huge honour for me to be joining a club with the size, stature and expectations of Rangers.
“From the first conversations, it was clear to me how ambitious the club is and I’m excited to play a part in shaping its next chapter.”
Thelwell suggested that the “men’s first-team structure” will be a priority.
Rangers’ incoming sporting director has been with Everton for three years after leaving his role as the New York Red Bulls’ head of sport and is also is a former director of football with Wolverhampton Wanderers.
He has also worked with the former Motherwell manager Billy Davies at Preston North End and Derby County.
Stewart said their “rigorous recruitment process” had found “an outstanding candidate with terrific experience in the Premier League and the MLS”.
Everton said that Thelwell would depart his role when his current contract expires at the end of the season “as part of a transition from a single director of football to a wider sporting leadership team”.
“Incoming Everton CEO Angus Kinnear will lead the implementation of the new sporting leadership team, with senior appointments to be announced in due course,” they stated.
Thelwell’s imminent arrival is likely to be the first of a number of big changes at Ibrox, with American businessman Andrew Cavenagh and San Francisco 49ers Enterprises moving closer to finalising a takeover.
Reports of interest first surfaced earlier this year, but the Ibrox club have now confirmed that “productive conversations” are ongoing.
They also confirmed that the investors are looking for a controlling stake, although neither party have mentioned a timeline for any deal to be concluded.
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