John Terry, who is also included in the 23-man squad announced on Wednesday, was stripped of the armband in February, a decision that led to former Three Lions boss Fabio Capello to resign.
|ENGLAND SQUAD ANNOUNCED
|Roy Hodgson has announced the man who will travel to Euro 2012, with Gerrard named as captain
Hodgson told reporters of the decision: "In my opinion [Gerrard] is the man who can manage this award, or distinction.
"He was delighted last night when I told him of my decision.
"I'm counting on him to help me and build the team unity and environment."
England have two warm-up games prior to the European Championships where Gerrard will be expected to skipper the new-look squad.
Friendlies against Norway and Belgium precede the nation's opener against France on June 11.
Gerrard also played under Hodgson during the departing West Brom manager's short stint in charge of Liverpool between July 2010 and January 2011.