Assistant coaches Jimmy Nicholl and Jonatan Johansson have been put in temporary charge for Saturday's home game with Kilmarnock.
Gerrard has been an Under-18s coach with Liverpool's academy since retiring from playing in 2016 after a spell with LA Galaxy in Major League Soccer in the USA.
Both Sutton and Gerrard work as part of BT Sport's coverage for the Champions League and Premier League. "I have held initial talks with Rangers, and the plans are to pick them up in a couple of days' time".
"Rangers are grateful to Graeme, who did not hesitate when asked last October to become interim manager after the departure of Pedro Caixinha and then, at the turn of the year, when he was offered the role as manager until the end of the season".
The 37-year-old's only previous coaching experience has come at Liverpool, where he has spent almost a year managing the Under-18s side.
But two days on from Sunday's Parkhead mauling, the 43-year-old was called into a meeting with managing director Stewart Robertson to be told he was being sacked.
"Graeme has had to contend with hard and challenging circumstances but conducted himself in a thoroughly professional manner".
Rangers are third in the table, three points adrift of Aberdeen.
Castles says on his podcast: "Talking to some people close to Steven, the interesting guidance I was getting is that it's precisely because he wants to manage Liverpool in the future, that Rangers and the Old Firm is an attractive environment for him".
Lampard feels that the time is right for Gerrard to quit Anfield and test himself north of the border, however, telling talkSPORT: "In terms of the size of the club and knowing Steven pretty well, I think it's a great opportunity for him".
Gerrard is reportedly closing in on his first managerial job at SPL giants Rangers.