Carlos Bocanegra is one of a trio of new signings for Liga Adelante squad Racing Santander, the team announced on its official website.
The former Fulham, Rennes, Rangers and Saint Etienne defender will now join his fifth European team and first Spanish side. The 33-year-old joins midfielder Jorge Alonso and Serbian striker Andrija Kaludjerovic.
Racing currently plays in the Spanish second division following their relegation at the end of the 2011-12 season. Previously, Bocanegra had been linked with moves back to the Premier League or Ligue 1, with interest also coming from teams in Mexico and MLS.
The Californian will join Racing on a full-season loan and is expected to return to Rangers in June of 2013.
Bocanegra, a two-time Gold Cup winner with the United States, has eclipsed the 100-cap mark with his national side and has scored 13 times for the team. His first professional club was the Chicago Fire.
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