Gerrard, who has since been working as a pundit for BT Sport and coaching Liverpool's Under-18 team, has agreed a four-year contract with the Scottish club and will take over this summer.
"I am honoured to become the next manager of Rangers. I have enormous respect for this football club, and its history and tradition," he told his new team's official website.
"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."
Due to turn 38 at the end of the month, the retired midfielder has been tasked with toppling Celtic, managed by ex-Liverpool boss Brendan Rodgers, and returning Rangers to the pinnacle of Scottish football after much publicised problems in recent years.
Murty has been given the option of returning to his former role as head coach of the Rangers development squad but will take time to consider his next move.
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