The Liverpool great has been in talks with the Scottish side this week and described the discussions as “positive” on Tuesday.
The 37-year-old is said to have agreed a three-year deal in the last 24 hours after travelling to Glasgow to iron out the details.
Rangers are now expected to hold a media conference at Ibrox to present Gerrard as their new manager, just four days after they sacked Graeme Murty in the wake of the 5-0 thrashing by rivals Celtic on Sunday.
It will be a first senior job in management for Gerrard, who has been working as a youth coach at Liverpool since January last year.
Rangers are third in the Scottish Premiership table, 13 points behind leaders Celtic. Their last top-flight title triumph came in 2010-11.
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