Professor Michael Brown, who is vice-chancellor at LJMU, said: "Steven epitomises the university philosophy of 'Dream, Plan, Achieve'.
"As a young boy he excelled in the sport he loves and ensured his talent was recognised, looking upon challenges as opportunities and pursuing each available avenue.
"As a result he has become one of the best sportsmen in the country, if not the world, with a reputation for integrity both on and off the pitch.
"As a prominent sporting figure and a son of the city, it is fitting that LJMU, an international leader in sports and exercise science and a major contributor to Liverpool's success and growth, should award Steven with this honorary fellowship."
Gerrard, who was awarded an MBE earlier in the year, added: "I am very proud to become a fellow of Liverpool John Moores University.
"Not only has LJMU done so much for this city and the people of Liverpool but it has given the science of football international credibility. It is an honour to be recognised with this award."