Is it permissible for a translator to translate terms like "gods" in a foreign novel with the phrase "تعالى الله عن ذلك" (highly exalted is Allah above that) in a footnote, or is it better to alter it or keep it as is?

The problem is not with using the word "gods" (آلهة), as it appears in the Quran more than thirty times. The ruling on its use depends on the context and the intended meaning. If the story uses it to establish, affirm, or promote polytheism (shirk), then its use is forbidden. However, if it uses it in an acceptable context, such as narrating polytheism from the perspective of polytheists without affirming or promoting it, then there is no harm in that.

If the story to be translated uses this term in a forbidden manner, it is not permissible to translate it as is. Instead, the phrase must either be omitted entirely or changed to a permissible word that suits the context, in agreement with the client. As for a footnote that denounces the reprehensible while retaining its original form, it is subject to consideration and hesitation.