The deal will see Addison spend an initial month at Glanford Park, providing cover for the injured David Mirfin.
The 25-year-old has 132 professional appearances to his name having previously played for Rotherham, Barnsley and Derby, where he came through the academy. Last season he made six appearances in a three-and-a-half month loan spell at Rotherham.
Former Sheffield Wednesday defender Miguel Llera was a trialist in the Iron's 1-0 win over Huddersfield and it is unclear whether the signing of Addison will end Llera's chances of a contract with the Sky Bet League One newcomers.
Addison's loan deal will begin on Friday August 8, the day before Scunthorpe kick-off their campaign at Swindon.
Breaking news, transfer gossip, line ups and goal alerts from your football club - delivered direct to your mobile. Sign up for Sky Sports Alerts