The club's chief executive Charles Green expects the deal to be finalised in the coming weeks and be in place for next season.
Sports Direct recently become Rangers official merchandising supplier while the company's owner Mike Ashley is also one of the largest shareholders in the Scottish Third Division club.
"We have now decided that Sports Direct will be the partner," Green said on STV.
"We are now into the stage where we are doing some layouts, some pictorials of how it might look and we'll stick those on the website shortly so the fans can see what's being proposed.
"We have had good engagement from the fans on this. I think it was always an issue for fans but I think the fans accept now that this is something that we have to do."
"Almost all of the big stadia have been named now."
Ashley, who also owns Newcastle United, upset his club's fans when he renamed St James' Park as the Sports Direct Arena.
However, the Premier League club reverted back to its original name after signing a shirt deal with Wonga.
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