Gers boss Mark Warburton has allowed the winger to leave Ibrox.
Templeton played just six minutes of league football for Mark Warburton's side last season, after a knee injury ruled him out since August.
But, fitness providing, the 27-year-old could be in line for another stab at the second tier, under his former Hearts coach Gary Locke - the recently appointed Raith manager.
Locke was first team coach during Templeton's time there
Templeton cost Rangers a reported £700,000 from the Edinburgh side four years ago, and went on to make 88 appearances for the Light Blues, scoring on 27 occasions.
The former Scotland Under-21 international, who was linked with a move to English League One side Bradford City last month (Sun), helped his most recent employers to back-to-back promotions in 2013 and 2014.
However, Templeton was one of four senior players released following Rangers' promotion to the Premiership in May, alongside Nicky Law, Nicky Clark and Dean Shiels.
Last week the Mail reported that Clark was in talks with Southend United, and also has interest from Peterborough United, Bury and Barnsley.
Clark could be England bound