The 18 year-old has made two appearances for the Gunners’ first-team, and he is highly rated by their manager Arsene Wenger.
Born in Berlin, Zelalem initially played for Germany’s youth teams before switching his allegiance to the USA after receiving American citizenship in 2014.
He has since appeared six times for the US under-20 side and played for them at this summer’s under-20 World Cup where they reached the quarter-final stage.
A midfielder by trade, Zelalem only joined the Arsenal academy programme in 2013, and he has since risen rapidly from under-16 to under-21 level.
Described as ‘imaginative in possession and blessed with clever movement’ on Arsenal’s official website, Zelalem will bolster Mark Warburton’s attacking options and the manager is delighted to welcome him into his squad.
He said: “It’s nice to have him on board and a lot of work has been done. I’m thankful to some really good people at Arsenal and the work done by people here at Rangers.
“There is no doubt he is a very talented young player and I’m sure he’ll have an impact for us.”
The loan agreement will be reviewed in January.