A number of top-flight clubs in England were keeping tabs on the 27-year-old after his contract with Sheffield United expired following their relegation from the Premier League last season.
United tabled a number of contract offers to the midfielder, with former boss Chris Wilder claiming that he would have been one of the most well-remunerated players at the club if he had agreed.
He won a lot of admirers with his displays in United’s first season back in the top flight as an energetic midfielder with an eye for goal and good passing ability with both feet, but struggled to replicate those heights last term as the Blades were relegated to the Championship.
Lundstram has signed a three-year deal with the Ibrox club and revealed that a conversation with Gerrard, his childhood role model having grown up in the same area of Liverpool as the Rangers boss, proved key to his move to Scotland.
"I spoke with the manager and he sold the club to me, and I was just taken aback by his ambition, vision and drive," he told the official Rangers website.
"I know Glasgow is like Liverpool - a proper football city with proper football fans, and I know the people are very similar and I am buzzing to be a part of the atmosphere I am moving into.
"The chance to work with Steven Gerrard and Gary McAllister, as well as Michael Beale, was a huge draw.
"The manager is from the same area as me, and I want to learn from those coaches and become a better version of myself and continue to develop under them.
"As an outsider looking in, the scenes last season were unbelievable when the club won the league, and when I saw that, I knew I wanted to be a part of it and be a part of a club which wins more trophies for Rangers.
"There is something special still being built here and there is more to come. The pull of being in the Champions League was also massive for me and I want to help the team reach the group stage and make the most of that opportunity.”