Reports earlier in the month suggested the 36-year-old was primed to take the role, and Liverpool announced on Wednesday that Gerrard will replace Neil Critchley, who will take charge of the U23s.
Since retiring from football last year, Gerrard opted for more familiar ground when taking on the position of Academy coach at Liverpool in January, having turned down the chance to manage MK Dons in November.
"I have really enjoyed my time at the Academy so far and feel I have learnt a lot from the coaching staff here already. After speaking to Alex [Inglethorpe], we feel as though it is time for me to step up and manage my own team," Gerrard said.
"Neil has done a fantastic job with the U18s, so I hope I can continue where he left off, encouraging and nurturing players into the U23s and eventually the first-team setup."
Gerrard, who will complete his UEFA A Licence this summer, is confident he can make the transition from successful player to successful coach and has clear ideas about what he wants from his players.
"My teams will be physical. I see that we need that more. It is important you channel it in the right way," he added.
Read the full article on eurosport.co.uk: Liverpool confirm Gerrard will manage U18s next season