The Liverpool skipper was considered a favourite to be handed the armband after John Terry was stripped of the captaincy by the Football Association.
Gerrard and Hodgson have worked together in the past during the manager's ill-fated spell at Liverpool in 2010.
"I'm pleased to announce that Steven Gerrard will captain the team. In my opinion, he is the man who merits this award," Hodgson said.
"I know him as a player and a person. I know how committed he is to the England cause.
"He was delighted last night [Tuesday] when I told him of my decision.
"I shall be counting on him of course to help me as much as he possibly can to build the type of team unity and the type of environment that is going to be necessary to thrive in an important tournament."
England squad for Euro 2012:
Goalkeepers - Green (West Ham), Hart (Man City) Ruddy (Norwich).
Defenders - Baines (Everton), Cahill (Chelsea), Cole (Chelsea), Johnson (Liverpool), Jones (Man Utd), Lescott (Man City), Terry (Chelsea).
Midfielders - Barry (Man City), Downing (Liverpool), Gerrard (Liverpool), Lampard (Chelsea), Milner (Man City), Parker (Tottenham), Oxlade-Chamberlain (Arsenal), Walcott (Arsenal), Young (Man Utd).
Forwards - Carroll (Liverpool), Rooney (Man Utd), Welbeck (Man Utd), Defoe (Tottenham).
SOURCE:
http://ht.ly/1jO1GC
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