Arfield chose to leave Burnley as his contract came to an end with the prospect of a new challenge under England and Liverpool legend Gerrard too tempting to turn down.
Arfield revealed interest from Rangers first materialised several months ago.
The 29-year-old spent eight years in England with Huddersfield and the Clarets and is excited about the prospect of returning to his native land at a fascinating time for his new club.
"When a club of this magnitude comes in for you it is a no brainer", said Arfield.
Gerrard is seeking to improve the Rangers squad he inherited from former club boss Graeme Murty and clearly sees midfielder Arfield as the first missing piece in the pursuit of closing the gap at the top of the Scottish Premiership with arch-rivals Celtic.
"I'm excited to work with Gerrard".
It was fortunate enough to play against him.
"When you look at the style of football that Jurgen Klopp plays, I think every fan in the world loves watching that", Gerrard said in a Question and Answer session in Dubai as part of a Liverpool club function.
Gerrard, who will appoint former Scotland captain Gary McAllister as his assistant at Ibrox, wants to challenge Celtic's dominance of Scottish football, with Brendan Rodgers' side looking to secure back-to-back trebles when they face Motherwell in Saturday's Scottish Cup final.
'Scott is the first one in and I look forward to working with him and others who will be coming in to strengthen the squad.' He added.
'It is pleasing also that we have been able to start our rebuilding process so quickly after the end of the season.