Most recently Burnley's sporting director, McParland, 56, was previously chief scout at Liverpool and worked with Raheem Sterling and Jordan Ibe.
He also had a spell as Brentford director of football when Rangers boss Mark Warburton was at Griffin Park.
The Ibrox side are currently top of the Scottish Championship, with nine wins out of nine and host Queen of the South on Saturday.
"New benchmarks and standards must be set both on and off the field of play, and everyone at Rangers wishes Frank the very best in his new role," Rangers said on their website.
"McParland is the latest appointment to be made at Rangers as the club strives to modernise, move forward and return to the highest echelons of the game."
Rangers have appointed Frank McParland as their new head of recruitment.