Both Halliday and O’Halloran failed to make an impression on then manager Pedro Caixinha and went out on loan in the summer of 2017.
While 26-year-old midfielder Halliday joined Gabala in Azerbaijan, 27-year-old forward O’Halloran moved to Scottish Premiership side St Johnstone.
Murty, who will remain in charge of Rangers for the rest of the season, wants the two returning players to take their second chance at the Gers.
“I’m delighted to have Andy back,” Murty told The Scottish Sun. “He’s an aggressive midfield player and I think we have been light in that department.
“He’s been here and he knows the club. And at the end of the day he’s just desperate to play for Rangers.
“It’s an easy sell to him. You just say ‘Look Andy, you’ve got a second chance here and not many people get that at Rangers’.
“Michael is the same. They’re getting another chance to impress and play for this great club. It’s up to them grab it.”
Meanwhile, Murty has suggested how he wants 24-year-old midfielder Josh Windass to play.
Windass is a very talented and promising midfielder, but the former Accrington Stanley star has not exactly been great at Ibrox so far.
Murty told Rangers’ official website about Windass: “He’s a fantastic finisher, he gets into good positions, but I want him to get into those positions more. I don’t necessarily want him to come deep and start building play, that’s for other people.
“He needs to trust them to get the ball to him so we can use him as an attacking asset and I think when we do that and we show him how to get into those areas more often and more consistently, we can use his running power and his finishing to be a real threat.”
Rangers are third in the Scottish Premiership table at the moment with 40 points from 22 matches, as many as 11 points behind leaders and Old Firm rivals Celtic and three behind second-placed Aberdeen.