The 37-year-old, who is in his third spell with the club, was due to see his current terms expire in the summer but will now stay on for at least another year.
After enjoying an impressive season in front of goal, netting 12 times and claiming the Gers' Player of the Year and Players' Player of the Year awards, Miller has now been rewarded with a 12-month contract extension.
Speaking to the Scottish outfit's official website, Miller said: "I am over the moon to get it signed and I'm looking forward to the last few games of the season and then building towards a better, more competitive year next season."
Manager Pedro Caixinha added: "It is fantastic for everyone at the club that Kenny has agreed to stay with us for another year.
"I have been greatly impressed by his professionalism and leadership both on and off the field since I arrived here, and I believe his performances demonstrate he still has so much to offer us."
Miller, who has netted 42 times in 126 appearances since rejoining Rangers in 2014, will take his association with the club to eight years should he see through his latest deal.