The former Liverpool captain, who will take up the role during the summer, said he was “honoured” to take the top job at Ibrox, adding: “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.”
Gerrard, who will confirm his backroom staff at a later date, arrived at Ibrox earlier this afternoon, with crowds gathering outside the stadium ahead of a planned press conference.
Chairman Dave King expressed his delight at the appointment of the ex-England skipper, and said: “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.”
The club’s managing director Stewart Robertson described Gerrard as “the perfect man to manage our club at this time” while director of football Mark Allen said: “From the moment we met with Steven to discuss this opportunity, we felt that his ambitions and desire to succeed equalled our own for the club.
“Make no mistake, Steven fully understands the demands that come with managing a club of this stature and we look forward to exciting times ahead.”