Gerrard hails Dalglish appointment
Dalglish signs Reds deal
Dalglish and his assistant Steve Clarke have both signed three-year contracts after overseeing a dramatic improvement in the club's fortunes since replacing Roy Hodgson in January.
Liverpool could even secure fifth place and Europa League football - something that looked distinctly unlikely prior to Hodgson's dismissal - and Gerrard feels the club will now continue on an upward curve.
"It is fantastic news and the news everyone connected with the club has been waiting for," Gerrard said. "Kenny has lifted the place, the supporters, the players and everyone connected with the club and now we can all look forward to a bright future.
"Before he came in everyone knew it was a difficult time as results were not going well, but sometimes all you need is a change. The last six months has been a lot more positive.
"He is very popular with the players and I think he is a popular guy in general. Everyone knows about his knowledge, his experience and what he has done in the game.
"With Kenny signing and a few more signings, I am sure expectations will go through the roof but we just need to continue what we have been doing over the last six months."