The Canadian international currently in his native country on international duty phoned Rangers chairman Nick Blackburn to confirm he was signing.
"Marc phoned me from the USA on Thursday night to confirm he wanted to re-sign.
"We are very pleased that he will be signing a new contract and we have fought off competition from two other big First Division clubs."
The 26-year old was out of contract this summer and was thought to be stalling on a new deal, alerting the interest from division one rivals Sheffield United, Nottingham Forest, Coventry, Cardiff, Ipswich and Wolves.
Bircham made no secret of his desire to stay at Rangers after playing an important part in this year’s promotion season and is looking forward to the challenge of the first division again.
He won his 15th international cap last Sunday against Wales in the 1-0 defeat.
Meanwhile contract talks continue at Loftus Road with Clarke Carlisle, Paul Furlong, Matthew Rose and Richard Johnson’s futures yet to be decided.
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