The goalkeeper’s deal was due to expire in the summer but has put pen to paper on a contract which will keep him at Ibrox until 2024.
“I am delighted to have committed my future to Rangers for the next two-and-a-half years,” he told the club’s website.
“I have thoroughly enjoyed my time at the club so far, and being a part of the team which won the title last season will live with me forever.
“I want the opportunity to be a part of future success at this club, while hopefully also adding more Scotland caps to what I have already.”
McLauglin will be hoping to make his case to become the club’s No.1 with McGregor out of contract at the end of the season.
“I am delighted Jon has committed his future to Rangers," sporting director Ross Wilson said.
"Since he joined the club, he has been a fantastic professional both on and off the pitch, while his performance levels on all occasions have been strong.”
Rangers dropped two points in the title race on Saturday with a 3-3 draw at Ross County.
Giovanni van Bronckhorst lamented mistakes at the back with McGregor and Calvin Bassey guilty of giving away cheap goals in the first half.