The 41-year-old Gerrard replaces Dean Smith, who was fired on Sunday after Villa lost five straight games in the English Premier League. Villa are 16th in the Premier League, two points above the relegation zone.
"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," said Gerrard.
"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," he added.
Gerrard is considered one of the greatest players in Premier League history, scoring 186 goals in 710 appearances for Liverpool and winning nine trophies.
Former Liverpool captain guided Glasgow Rangers to a first Scottish Premiership title in 10 years last season, finishing the campaign undefeated in the league.
"Since moving into coaching after his illustrious playing career, Steven began by managing and developing top young players in the Liverpool FC Academy which is experience we value highly at Aston Villa," said CEO Christian Purslow.
Gerrard is England's fourth-most capped player with 114 international appearances, in which he scored 21 goals.
Birmingham, Nov 11
Steven Gerrard has been appointed as the new head coach of Aston Villa following his departure from Rangers, the Premier League club said on Thursday.
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