The Liverpool legend confirmed earlier this week that he had held positive talks with Ibrox chiefs about taking on the job.
Gerrard held further discussions with the Scottish giants on Thursday and it is understood that a three-year deal has been agreed.
The 37-year-old is currently working as an academy coach at Liverpool and has made no secret of his desire to move into management.
Gerrard will replace Graeme Murty, who was axed by the Gers on Tuesday in the wake of a 5-0 mauling at the hands of Celtic.
Speaking to BT Sport this week about reports linking him with the Rangers role, Gerrard said: "Yes, there are truth in rumours.