Gerrard, who took over 18 months ago, said: "When Dave King approached me about the possibility of extending my contract with Rangers, it was a very easy decision to make because I'm very happy and feel that we are building something special together at the club.

"I'd like to thank the board for the backing they have given me already in my time at the club and also most importantly, the Rangers fans who have given me and the team such tremendous backing both this season and last."

Chairman Dave King added: "From the moment I met Steven, I could tell that he was the right man to help us to drive this club forward on the pitch. He has an elite mentality and that is exactly what I was looking for.

"He is relentless in his desire to bring success to our club and we are delighted that he has signed this new contract, which shows his commitment to Rangers."

Gerrard was approached by managing director Stewart Robertson and sporting director Ross Wilson late last week.

And he claimed he would have signed his contract inside 10 minutes if he had not been preparing for last weekend's Betfred Cup final and Thursday night's Europa League decider against Young Boys.

The former Liverpool captain told Rangers TV: "I have always tried to go about my work, whether I was a player or going into coaching and now management, I like to be loyal and committed to the job in hand.

"It was a pretty straightforward conversation when Ross and Stewart approached me. It was only just over a week ago and I asked them to park it up for a week just because of the magnitude of the games.

"But if the magnitude of the games weren't there it would have been done in five or 10 minutes, and I think that shows the commitment myself and the staff have got here."