Rangers will pay £3.8million for Ben Godfrey if they opt to sign him permanently next summer.
The defender was announced as a new addition to the team on Monday morning after joining from Atalanta.
He has signed a season-long loan deal and will don the No. 4 shirt.
Rangers have the option to make Godfrey's stay permanent after the loan.
This would cost them less than £4million, a fraction of the £25million Everton paid for him six years ago.
The centre-back spent last season on loan at Brøndby, with previous stints at Ipswich Town and Sheffield United.
He made a limited impact in Serie A, but is keen to make his mark at Rangers.
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Godfrey told RangersTV: "At the age I am now, and with the experiences I have had, I think I can bring experience to the defence, and I believe that I have got quality that I can show."
"The DNA that runs through this club matches me as a person. That’s something I spoke to the manager about as well; I think it’s a good fit."
He added: "Obviously there have been heights in my career where I have been at a good level personally, and I am desperate to get back there. I’ll do everything I can to make sure that I am.
"I know some boys who have been here before, and everyone always leaves with good memories and are still following the club, so it is good when you hear things like that.
"The badge speaks for itself, and it was exciting when I heard there was an opportunity to come here."
