Helped 10-man Liverpool beat Blackburn 3-2 on 10 April, scoring a late winner
Scored a goal and impressed as a substitute in Liverpool's 2-1 FA Cup defeat against Chelsea
Liverpool winger Stewart Downing and Manchester United striker Danny Welbeck have also been picked.
"It's not been an easy squad to put together," said boss Roy Hodgson. "But I'm pleased with the squad I've put together and I think it's a well-balanced squad."
Gerrard, who captained Liverpool during Hodgson's time as manager at Anfield, also led England at the 2010 World Cup.
"I know him as a player and a person and how committed he is to the England cause," explained Hodgson.
"He will help me build the team unity and environment we need to thrive in a tournament."
As expected, Wayne Rooney is selected despite being
suspended for the first two games
of England's Group D campaign, against France on 11 June and Sweden four days later.
Ian DennisBBC Radio 5 live senior football reporter
"After the debacle in South Africa, everyone was clamouring for youth. I'm slightly surprised Roy Hodgson has only named four forwards considering he will be without Wayne Rooney for a couple of games."
In addition to Carroll, Welbeck and Rooney, Hodgson will take Jermain Defoe - who has not played a competitive match for England since September 2010 - as a striking option.
Birmingham goalkeeper Jack Butland is among the list of five standby players, which also comprises Adam Johnson, Daniel Sturridge, Phil Jagielka and Jordan Henderson.
Barring injury, Johnson will miss out on a major tournament for a second time, having been axed from Fabio Capello's provisional World Cup squad in 2010.
Hodgson's wide players are Ashley Young, Theo Walcott, James Milner, Downing and Oxlade-Chamberlain.
Manchester City right-back Micah Richards also misses out as Hodgson names only seven orthodox defenders, including Phil Jones and Joleon Lescott, who are both capable of filling more than one position.
England's Euro highs and lows
Tottenham right-back Kyle Walker was ruled out with a toe injury.
Ruddy joins Joe Hart and Robert Green in the goalkeeping contingent.
"It's a real honour for me and hopefully it's an indication as to how far I have developed as a player," said Ruddy.
"Playing for my country has been a dream of mine, of course it has.
"I'm under no illusions as to the quality of Joe Hart and Rob Green and that I will be number three keeper. But I'm really looking forward to training with them and getting down to some hard work."
The Football Association's planned training camp in Spain has been cancelled.
Instead, England will meet up in Manchester on Wednesday before flying to Norway on Friday for their friendly in Oslo on 26 May.
Seven days later, they face Belgium at Wembley - although Ruddy will be missing having been given special dispensation to leave the squad for his wedding on 2 June.
- Joe Hart, Robert Green, John Ruddy.
- Leighton Baines, Gary Cahill, Ashley Cole, Glen Johnson, Phil Jones, Joleon Lescott, John Terry.
- Gareth Barry, Stewart Downing, Steven Gerrard, Frank Lampard, James Milner, Alex Oxlade-Chamberlain, Scott Parker, Theo Walcott, Ashley Young.
- Andy Carroll, Jermain Defoe, Wayne Rooney, Danny Welbeck.
- Jack Butland, Phil Jagielka, Jordan Henderson, Adam Johnson, Daniel Sturridge.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.