The 22-year-old midfielder took in three loan spells from the 2019/20 season, spending the second half of the 2021/22 season at English League Two club Salford City.
Kelly, a Rangers youth product, made only three appearances for the Gers’ first team, adding up to 34 minutes of action overall and did not appear to be part of Giovanni van Bronckhorst’s plans going forward.
The midfielder has garnered praise from Martindale for his delivery from set pieces, the way he sees the game, his creativity and versatility.
Martindale further pointed to his delight at Kelly continuing his career with the Lions and expressed his gratitude to all concerned parties for the deal going through.
“I really like the way Stephen sees the game – he is a very creative player with great energy and a wonderful right foot”, Martindale said to Livingston’s official website.
“He has a tremendous delivery from set plays and can play on either side as an 8, or further forward as a 10.
“I’m delighted he has chosen to continue his career and development with Livingston FC.
“He has shown a strong commitment to Livingston FC by signing a three-year deal and I think it shows how highly we rate Stephen too.
“We were only able to get this deal done with the help and understanding of Rangers FC, Stephen himself and his representation.
“I think it’s fair to say that there was a good bit of interest in Stephen and we are delighted he has chosen to sign on with ourselves.”
After five games in the Scottish Premiership, Livingston sit in seventh place in the league table, following two wins and three losses.
The Lions next play host to Hearts, who are currently placed third in the Scottish Premiership this season, behind leaders Celtic and their rivals Rangers.
