"He was delighted last night when I told him of my decision,” said Hodgson in a press conference. “I'm counting on him to help me and build the team unity and environment," he added.
Gerrard and the new England manager worked together during the 64-year-old's nightmarish 6-month reign at the Anfield hotseat that came to a crashing end before Kenny Dalglish was appointed to steady the ship.
Gerrard last captained England during the 2010 World Cup where he was one of the few shinning stars in England's disappointing campaign that saw them lose out 4-1 at the hands of Germany in the knockout stages. He takes over the armband from John Terry who was stripped by the Football Association due to the racism row with Queens Park Rangers' Anton Ferdinand.
Meanwhile Hodgson also named his 23-man squad for the Euro Championships that begins on June 8 in Poland and Ukraine.
Joe Hart will provide the calmness that has been lacking for England in goal and he will be deputized by West Ham United's Robert Green and Norwhich City's John Ruddy.
Arsenal teenage sensation Alex Oxlade Chamberlin and former Motherwell goalkeeper Ruddy have been called up for national duty for the first time while Rio Ferdinand was omitted in favour of Joleon Lescott, Gary Cahill and John Terry at center-back.
Manchester City's Micah Richards has also been overlooked for the right-back position and Glen Johnson looks the firm favourite with Phil Jones expected to give cover. The left-back position will be guarded by Chelsea's Ashley Cole with Everton's Leighton Baines providing cover.
The midfield position was always going to raise eyebrows and so it did especially with the inclusion of Stewart Downing and James Milner alongside the expected names like Scott Parker, Steven Gerarrd, Frank Lampard, Ashley Young, Gareth Barry and Chamberlain.
Andy Caroll's form might have peaked only in the latter stages of the season but that was enough to earn him a call-up alongside Wayne Rooney, Danny Welbeck and Tottenham's Jermaine Defoe. There was no place for Peter Crouch or the impressive Grant Holt.
The five players on stand-by are Birmingham City custodian Jack Butland, Liverpool's Jordan Henderson, Adam Johnson (Man City), Phil Jagielka (Everton) and Daniel Sturridge (Chelsea).
And That's thesteifmastertake!!