The 29-year-old will be the first of potentially many names signing up to the club, with investment and expectation in high demand at the Ibrox club.
Gerrard, who made 710 appearances for his boyhood club during 17 years at Anfield, formally takes charge of Rangers on June 1 and said he was looking forward to getting started.
Steven Gerrard 'delighted' to make first Rangers signing
"When a club of this magnitude comes in for you it's a no-brainer".
"We are going to go up to Glasgow and give it our best shot", the former midfielder stressed.
The Canada global midfielder has predicted quality players to be attracted to Rangers due to the presence of Liverpool legend Gerrard at Ibrox, and this should be a concern for Celtic. There is much more to be done of course as we look to build towards our Europa League campaign which will start in early July.More news: Simpson lead cut to five at Sawgrass with Woods on the prowl
Arfield said: "As soon as the interest came in, it was something I wanted to go for".
And after a three-year spell with the Terriers, the midfielder chose to join Burnley in 2013, where he played three seasons in the Premier League.
As he prepares to make his first move into senior management, Liverpool icon Steven Gerrard says the position at Rangers was too good a chance to pass up.More news: Jeffress Prays 'For the Peace of Jerusalem' After Being Called 'Bigot'
The Scottish Premiership club will see David Bates leave Ibrox this summer for Hamburg, whilst there's doubt popped up around Bruno Alves at various points over the season, and bringing in a central defender is likely.More news: NCIS Star Reveals She Left Series After Allegedly Suffering Multiple Physical Assaults