The Liverpool legend has elected to walk away from the Scottish champions after three-and-a-half years in charge, to move to the Premier League with Aston Villa.
Gerrard, who led the ‘Gers to the Premiership title last term – ending Celtic’s nine-year stranglehold – moves to Villa Park to replace Dean Smith, following his sacking last weekend.
The Villans moved swiftly this week to prise the 41-year-old from Ibrox after making him their No.1 target and duly reached a compensation agreement with Rangers.
That sees the Ibrox club bring in around £4million, with Gerrard signing a deal in the West Midlands until 2025.
In a statement, Rangers, rather complimentarily, said: “Rangers can today announce the departure of manager Steven Gerrard to Aston Villa.
“Gerrard moves to the Midlands club having played a key role in the significant growth of the Light Blues in numerous areas during his three-and-a-half years at Ibrox.
“Rangers now has an outstanding, highly competitive playing squad which is capable of both winning and entertaining on all fronts, with the highest of standards now also prevalent throughout the football department.
“In European competition, Rangers have qualified for group stage football for four successive seasons, and knockout-stage football in the last two, improving not only the club’s standing on the continent, but also that of Scottish Football.
“Domestically, Rangers have flourished under Gerrard, with that work culminating in the club claiming their 55th title last season on the back of an unbeaten league campaign.
“He now leaves Rangers with the club top of the Scottish Premiership with a Premier Sports Cup semi-final to look forward to and the opportunity to qualify yet again for the knockout stages of the Europa League still in the team’s own hands.”
The club’s chairman, Douglas Park, added: “I would firstly like to put on record my thanks to Steven for his outstanding efforts over the last three-and-a-half years at Rangers.
“He has provided us all with some unforgettable moments, not least his delivery of the Scottish Premiership title back to Ibrox last season having not lost a match in the entire league campaign.
“In European competition, he has restored the good name and credibility of our club on the continent and leaves us in a very healthy position on the pitch.”
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And sporting director Ross Wilson, said: “Firstly I want to say thank you to Steven for the work, dedication and professionalism with which he has diligently carried out the role of Rangers manager.
“Steven and his backroom staff have ensured that the club is undoubtedly in a better place today than it was three-and-a-half years ago. I joined Steven on that journey just over two years ago and from the first day we met, I have enjoyed all aspects of our partnership.
“We have shared a desire to move Rangers forward, to modernise our infrastructure and to make the club win again. There have been so many areas that we have moved forward, and there is still so much to be done, but I can’t stress enough how important it has been to have with us a first team manager who shared a drive and desire to set standards and move the whole football operation forward.
“I know how much it meant to Steven that our 55th league championship was achieved last season, and alongside an excellent European record across his tenure, we have had some truly memorable days and nights.
“Personally, I am proud of the work that we have done together along with all of the players and staff, and I know Steven shares that pride. We wish Steven nothing but success for his next chapter.”
Rangers ended by adding: “Rangers Football Club would like to put on record their thanks to Steven and his staff and wish them every success in the future. They will always be welcome at Ibrox.”