The former Rangers man believes Mark Warburton's side can challenge Celtic.
Rangers manager Mark Warburton celebrates winning the Scottish Championship with the trophy
The Gers return to the Scottish Premiership next season after their Championship winning campaign last season.
There is big expectation on their shoulders, with the club’s fans keen to see them fight for the title once again following a four-year absence.
Celtic manager Ronny Deila celebrates with the trophy at the end of the game
To do that they will have to challenge Old Firm rivals Celtic, who have won the title for five consecutive years, something which has been greatly aided by Rangers absence from the top flight.
And Stein has backed them to challenge again upon their return, but only if they can find their consistency.
“I think we might challenge for the league,” he told rangers.co.uk.
“I think Celtic missed Rangers last season, and we have a very good Rangers squad. If we are consistent enough, we can challenge for the title.”
Burnley's Joey Barton celebrates promotion to the premier league
If Rangers are to challenge next season, much will rest on the work that Mark Warburton can do in the summer transfer window.
He has already brought five new faces to Ibrox, with Joey Barton, Clint Hill, Jordan Rossiter, Matt Crooks and Josh Windass already agreeing to make the move to Scotland.
More signings are likely, and Warburton will need all of them to be successful if they are to challenge for the title in their first year back.
Rangers manager Mark Warburton celebrates at the end of the match