Gerrard said: “Aston Villa is a club with a rich history and tradition in English football and I am immensely proud to become its new head coach.
“In my conversations with Nassef, Wes and the rest of the Board, it was apparent how ambitious their plans are for the club and I am looking forward to helping them achieve their aims.
“I would like to express my sincere gratitude to everybody associated with Glasgow Rangers for giving me the opportunity to manage such an iconic football club.
“Helping them secure a record-breaking 55th league title will always hold a special place in my heart. I would like to wish the players, staff and supporters the very best for the future.”
Villa sit 16th in the Premier League table, two points above the relegation zone after 11 games of their campaign.