The Liverpool midfielder received the award from Sir Bobby Charlton at the FA England awards ceremony at St George's Park on Sunday evening.
Gerrard, who had previously lifted the award in 2007, finished ahead of Manchester United striker Danny Welbeck, with Chelsea defender Ashley Cole third.
Gerrard joins Chelsea midfielder Frank Lampard and Manchester United striker Wayne Rooney in lifting the award twice.
The 32-year-old was one of England's best performers at Euro 2012 when he set up a series of goals with his deadly delivery from set pieces.
The award completes a memorable period for Gerrard, who was handed the England captaincy by manager Roy Hodgson ahead of the finals in Ukraine and Poland.
More than 180,000 votes were cast by supporters on TheFA.com website, a record for the player poll since David Beckham was crowned in 2003.
Left-back Stephanie Houghton was voted England women player of the year.
Houghton was a star performer for Team GB during the Olympic Games and scored the winner against Brazil.
Other notable award winners included the women's senior team, who were voted Club England team of the year.
The men's under-21 and women's under-23 players of the year awards went to Liverpool midfielder Jordan Henderson and Toni Duggan respectively.
The evening was part of The FA's 150th anniversary programme and celebrated the work of the Bobby Moore Fund for Cancer Research UK.
FA chairman David Bernstein said: "Clearly The FA England Awards is about much more than prize-giving and honouring those who have achieved.
"The elite level is the pinnacle of a pyramid that makes English football so special.
"They are the inspiration to over two million people regularly playing football in this country. All involved at every level deserve our recognition and respect."
Bernstein also hailed the new National Football centre at St George's Park which is where England will prepare for Wednesday's friendly international with Brazil at Wembley.
He said: "Being here at St George's Park, the new home of all 24 England teams, is wonderful and the coming days will show how our development sides train side by side with senior squads on perfect pitches with state-of-the-art facilities.
"For all, whatever the age, it is a great setting for the pursuit of excellence. That, coupled with the togetherness and team spirit fostered by a strong club mentality, will surely be beneficial to helping bring success to England teams in the future."
Bernstein presented England and Team GB blind football star Dave Clarke with the lifetime achievement award and described him as "an inspiration to so many".
His words were echoed by David Beckham in a filmed tribute after the former England captain had previously joined Clarke for a training session.
Beckham said: "I just want to say congratulations. It was a real honour and a pleasure to see what you and the guys get up to and achieve.
"It was an amazing thing for me to see and it is a true honour to meet and have worked with you. Congratulations again on the lifetime achievement award, it is really well deserved."
The evening also saw the Bobby Moore Fund put in the spotlight, with Stephanie Moore presenting three of the youth awards.
This month marks the 20th anniversary since World Cup-winning skipper Moore's death from bowel cancer.
The FA has backed the launch of a new 'Make Bobby Proud' initiative with a £25,000 donation from the FA Community Shield Fund.
The full list of award winners is:
Men's youth player of the year - Nathaniel Chalobah
Women's youth player of the year - Alex Greenwood
Women's Under-23 player of the year - Toni Duggan
Disability player of the year - Imbrahima Diallo
England 'C' player of the year - Jamie Turley
Club England team of the year - England Women's Team
Men's Under-21 player of the year - Jordan Henderson
Lifetime achievement award - David Clarke, England and Team GB Blind Team
Senior women's player of the year - Stephanie Houghton
Senior men's player of the year - Steven Gerrard
Gerrard spoke of his pride at winning the player of the year award but admits leading England to trophy glory is a bigger priority.
He said: "It means a lot to me when you look at the quality and standard of players in this squad.
"For me to be picked out to win an individual award is a bonus and something I'm really delighted with.
"It's always a proud feeling to play for this team and the manager believing in me and giving me the captaincy was a huge lift for my personal confidence.
"I think I've shown a level of consistency that maybe I haven't shown in previous years so it's been a good year.
"But the most important thing for me is achieving stuff with the team and unfortunately we lost out on penalties again in Euro 2012 and that's the reason I stayed around.
"I believe in the standard of players we've got and got confidence in them so that one day I can come away one of these tournaments with my head held high and there will be some success there."
Gerrard has already intimated that the 2014 World Cup in Brazil would be his international swansong - if England qualify.
He said: "There would not be a better place for England to have success than in Brazil.
"The challenge first of all is for this team to get there. It will be a difficult tournament for all the teams going out there because of the conditions but what a stage.
"There would be no better country, than England of course, to have a successful tournament.
"If I could win something with this team, I don't think I could put into words what it would mean.
"This country will go crazy if we were to have a successful tournament and it will happen one day.
"It might not be when I'm an England player but you look at the players we've got.
"If you look at the standard of the players we've got today, I'm sure in the future England will add to that one World Cup."
Gerrard is full of praise for Ashley Cole with the left-back poised to win his 100th cap in Wednesday's friendly international against Brazil at Wembley.
He said: "Ashley has been magnificent for England over many, many years.
"He certainly deserves to gets 100 caps and let's hope he celebrates it with a win.
"Will I let Ashley lead the team out? I think decisions like that are down to the manager but I wouldn't mind stepping aside at all.
"Ash is a team-mate of mine, we've shared a lot of caps together."