The Ibrox club are currently down in the Third Division after being penalised for tax issues and illegal payments in the summer but Mulgrew feels the Hoops, who sit 15 points clear in the top competition, need their arch rivals back to increase the excitement in Scotland's leading league.
"If it was my choice? Probably, yes. But I don't want to get involved in what is going on that side of things," Mulgrew said.
"I am just concentrating on Celtic and hopefully things will work out for the best."
He later added the following on Twitter, just to ensure that he was not calling for Rangers to be reinstated: "In my opinion the league is more exciting with Old Firm games. Any player in Scotland would agree. I did not say they should be let back in."