On 24 May 2013, Daly agreed to join Rangers on a free transfer when the Glasgow club's transfer ban was lifted on 1 September 2013. On 4 March 2013, Rangers announced they would make a move to sign Daly on a pre-contract deal. Manager Ally McCoist confirmed their interest in signing Daly. The move meant Daly would become the first Catholic player from the Republic of Ireland to sign for Rangers. McCoist himself said that he had no problem with Daly's religion or place of birth.