Impressive form earlier in Godfrey’s career took him from Norwich to Everton in a deal worth a reported £20m in 2020.
Capable of playing centre-back and full-back, he has two England caps but has had limited minutes since moving to Atalanta in 2024.
He has played just five times for the Serie A club, and his move to Ibrox is his fourth loan in the past two years after stints at Ipswich Town, Sheffield United and Brondby.
Despite that, Rangers manager Derek McInnes is pleased to be signing a player who has “competed at a very high level throughout his career”.
He added: “He’s played in the Premier League, been involved with England, and brings a lot of experience with him.
“He’s a strong, athletic defender with good qualities both on and off the ball, and we believe he can add a lot to the squad.”