The Liverpool legend flew into London for talks on Thursday, fresh from his club's victory in the Champions League semi-finals in Rome. Gerrard is working as an academy coach at the Merseyside club where he played for the majority of his career.
But now he will take on the huge task of managing Rangers, with the brief of going up against his former Liverpool Brendan Rodgers - in charge of champions Celtic.
Gerrard said in a statement published on the club's official website:
I am honoured to become the next manager of Rangers. I have enormous respect for this football club, and its history and tradition. I can’t wait to start this new journey at Rangers as we look to build on the many successes that this club has achieved.
According to a report by The Daily Record, Gerrard agreed to replace temporary manager Graeme Murty following discussions over recent weeks regarding the pot available to him for a transfer budget.
Rangers chairman Dave King is said to have offered assurances of fresh investment. King said on Friday:
We are delighted to confirm today that Steven Gerrard will become the next manager of Rangers. From the very beginning, talks have been extremely positive and we believe that Steven is the right man to drive Rangers forward. He was extremely impressive throughout our negotiations and we are convinced that he has the necessary knowledge and temperament to lead the club to the success we all desire. This a special day for our club, our fans and for Steven.