Alves joined Rangers from Cagliari last summer, and made 25 appearances in all competitions for the Scottish giants during the 2017-18 season.
The 36-year-old’s contract at Ibrox was due to run until the end of next season, but speculation linking him with a move to Parma gathered pace earlier this month.
The Italian outfit have now confirmed the deal in a statement on their official website, with the Portuguese penning a one-year contract.
Alves, who was a part of the Portugal squad that competed at the 2018 World Cup, has represented Zenit St Petersburg, Fenerbahce, Cagliari and Rangers since leaving Porto in 2010.
— Parma Calcio 1913 (@1913parmacalcio) July 12, 2018