Standout performances early in Godfrey’s career earned him a reported £20m move from Norwich to Everton in 2020.
Able to feature at both centre-back and full-back, he has two England caps but has seen limited action since joining Atalanta in 2024.
The defender has made only five appearances for the Serie A side, and his switch to Ibrox is his fourth loan in two years after spells with Ipswich Town, Sheffield United and Brondby.
Rangers manager Derek McInnes said he is delighted to sign a player who has operated at a very high level throughout his career.
He highlighted Godfrey’s Premier League experience and involvement with England, noting the defender brings significant know-how to the team.
McInnes described him as a strong, athletic defender with quality on and off the ball, and believes he can make a major contribution to the squad.