2:12 Watch the latest developments from Ibrox, after Steven Gerrard agrees to become the Rangers manager, according to Sky Sources Watch the latest developments from Ibrox, after Steven Gerrard agrees to become the Rangers manager, according to Sky Sources

Steven Gerrard has agreed a three-year deal in principle to become Rangers manager, according to Sky sources.

Sky Sports News understands Gerrard will arrive in Glasgow on Friday to officially sign his contract. Gary McAllister will be his assistant at Ibrox.

Gerrard shook hands on the deal with the Rangers hierarchy late on Thursday in London following his return from Rome - where he watched Liverpool reach the Champions League final.

Rangers director of football Mark Allen and head of scouting Andy Scoulding convinced Gerrard to take the plunge into management at Rangers.

The pair have connections with the former Liverpool captain from their time in England.

It is understood Gerrard asked for assurances on transfer budget before agreeing to take the role.

1:26 Former Liverpool assistant manager Phil Thompson says taking the Rangers job is 'very risky' Former Liverpool assistant manager Phil Thompson says taking the Rangers job is 'very risky'

Gerrard, 37, has been working as a Liverpool academy coach since April last year, but will now take over from Graeme Murty, who was sacked earlier this week.

Murty was set to manage Rangers until the end of the season but was dismissed on Monday in the wake of a 5-0 loss at Celtic, citing the club's talks with Gerrard as a factor in the team's performance.

Rangers are currently third in the Scottish Premiership, 13 points behind Celtic, who clinched a seventh straight title when they defeated their Glasgow rivals at the weekend.

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