The five-year contract is worth $60 million US.
"We are excited about what it means to our future, both short-term and long-term," general manager Jon Daniels said. "He adds something to our club that we sorely needed and will be a big part of what we're doing."
One of the most coveted pitchers on the free-agent market, Millwood will be the No.1 ace for a revamped Texas pitching staff that also includes newly-acquired starters Adam Eaton and Vicente Padilla.
Kevin Milwood joins a revamped Rangers starting rotation. (Photo by Nick Laham/Getty Images)
The 31-year-old Millwood spent last season with Cleveland and sported a 9-11 record with an American League-leading 2.86 earned-run average.
Millwood rejected a salary arbitration offer from the Indians and turned down an offer from Boston to join Texas.
After making 25 starts for Philadelphia because of elbow problems in 2004, Millwood played only one season with the Indians.
"I felt as good last year as I did in '97 (as a rookie)," Millwood said. "I probably got more out of last year. Obviously, I wanted to show people that I was healthy, which I felt that I did."
Millwood has a career record of 107-75 with a 3.76 ERA in 258 games (250 starts) with Atlanta, Philadelphia and Cleveland.
The nine-year veteran has won at least 17 games three times and was an all-star in 1999.
"I wanted to go somewhere that wanted to win," Millwood said of the move to the Rangers. "It's nice to see that they are doing a lot of things to make the team better. They are committed to making this team better and that attracts you even more."
with files from Associated Press
