The former Porto man joined from Benfica at the beginning of the season and has made 29 appearances so far, scoring four goals and assisting a further eight.
The Portuguese enjoyed a decent performance against Celtic last weekend, scoring his side's second goal, and will be hoping for another strong showing as Rangers face up against their arch rivals in the upcoming Scottish Cup semi-final.
Question marks were raised as to how Candeias would get on after Pedro Caixinha, who brought him to the club, was fired. However the winger has gone from strength to strength under Graham Murty and shows no sign of slowing down.
In fact, Candeias is arguably the most successful element of Caixinha's legacy at Rangers, with the Portuguese manager adding four compatriots in Bruno Alves, Fabio Cardoso, Dalcio and Candeias at the beginning of the season.
All bar Candeias have been disappointing, and the 30-year-old winger can hold his head high for his contribution to the club throughout the campaign.
In typical fashion, many Rangers fans took to Twitter to express their delight at Candeias's new contract, some of whom dubbed him the 'player of the year' for 2017/2018.
Here is a round-up of some of the reaction:
Delighted at this— Mungits (@CameronQuinn92) 14 March 2018
Buzzing at this he loves being here and always gives his everything and has improved massively to become an important member of the squad— SMITHY (@smithycrs92) 14 March 2018
Player of the year at rangers been a great signing— ross samson (@16samo90) 14 March 2018
Happy he’s found a home.... worked fir it and deserves it— RangersBoxingRugby (@thefightscore) 14 March 2018
Deserves his new contract been superb for us always gives 100%— Gordon Irving (@GordonIrving8) 14 March 2018
Well deserved guy has been brilliant all season— mark steel (@Sparky_MjBc) 14 March 2018
Well deserved if the case. Outstanding contribution so far this season— Spoon (@457ish) 14 March 2018
Great news. Great player with massive work ethic. Been a pleasure watching him.— Liam (@wadateer) 14 March 2018
Great stuff! . Like Bet 365 posted approximately 70 % of the earth is covered by water,the other 30 % is covered by Daniel Candeias— Colin Brown (@Broonster96) 14 March 2018
Great news.I love how the youngsters will learn from his effort in games.— I'll be Frank (@Frank_282930) 14 March 2018