Please Wait . . .
Rangers boss Gerrard said the Scottish Premiership side had competition from multiple teams for the signature of the 20-year-old, who has played at left-back and centre-back.
Leicester will be due to receive training compensation when the pre-contract move goes through once the transfer window opens.
"There was a lot of clubs interested in Calvin and for us it's pleasing to secure the services of another young talent," Gerrard said.
"He's a strong and dynamic athlete, who is very much the modern day full-back.
"He will develop further and we are excited to have made another strong addition to our group.
"He's left-footed, physically powerful, enjoys driving forward and is certainly equipped to thrive in the combative nature of Scottish football."
Bassey becomes the second permanent signing made by Gerrard in the space of a month with Romanian Ianis Hagi also linking up with the club on a long-term deal from Genk.
Speaking to Rangers TV, Bassey paid tribute to all Leicester had taught him as he looks to progress further with his new club.
"I'm really excited. Rangers are a massive club and I am just buzzing to get started. Ever since Rangers were in the picture and speaking to my agent, I was really excited and they were one of the clubs I thought highly of and I am just happy now to get started - I cannot wait," Bassey said.
"I feel Rangers is the right place for me because I have seen players such as Joe Aribo come from south of the border and do so well.
"I appreciate everything Leicester have done for me, and I just feel Rangers are offering me a massive platform to take my career to the next level and showcase my ability to the world.
"I know the fans are very passionate and want to win - and that's like me - I always want to win. I know Rangers has a very rich history, and I have played at Ibrox before [for Leicester U20s], but the stadium was empty as it was just a friendly.
"You could feel the history though and it was a good experience - I just can't wait to play there when it is a full stadium.
"I was delighted when Rangers came in for me. I know it comes with big pressure and that the fanbase are amazing.
"I've never had football the easy way - I signed for Leicester at Under 16's and I have always had pressure, so I feel like the pressure will be a blessing in disguise for me to help me take my career to the next step."