Rangers confirmed that the 58-year-old is in hospital and say they are in regular contact with both him and his family.
Goram is regarded by many Rangers supporters as the Ibrox club’s greatest goalkeeper of all time. After a £1million move from Hibs in 1991, he made 260 appearances during the nine-in-a-row league winning era.
After earning 10 major winners’ medals with Rangers, Goram left the club in 1998. He had a three-year period at Motherwell, which included a surprise loan spell at Manchester United under Sir Alex Ferguson.
Goram was capped 43 times for Scotland, distinguishing himself with his performances at the Euro 96 finals in England.
"Rangers can confirm our legendary goalkeeper, Andy Goram, is undergoing treatment for cancer in a local hospital,” said a statement from Rangers.
“Club officials are in regular contact with Andy and his family. The family have asked for privacy at this time. Everyone at Rangers wishes “The Goalie” well at this difficult time.”