Smith, who died aged 73 in October 2021, is the second most successful manager in Rangers' history, leading the club to 10 league titles, six Scottish League Cups and five Scottish Cups, as well as the 2008 UEFA Cup final, during two spells in charge.
He was also the manager of the Scotland national side from 2004-07.
A statue of Smith designed and sculpted by London-based artist Douglas Jennings, whose work also includes statues of England World Cup-winners Jack Charlton and George Cohen, as well as Queen Elizabeth II, will be sited between Edmiston House and the Copland Road stand at Ibrox.
"It is a poignant moment in the history of this great football club to unveil a statue of our legendary former manager, Walter Smith," Rangers chairman John Bennett told the club's website.
"The outpouring of tributes which arrived from near and far following his passing two-and-a-half-years ago speaks to Walter's stature as both a human being and custodian of our historic football club, and there is no Ranger more deserving in the modern era of being honoured in bronze."
The statue will be unveiled on Saturday May 25, before Rangers face arch-rivals Celtic in the Scottish Cup final at Glasgow's Hampden Park.
