Liverpool had to settle for a point against Chelsea at Stamford Bridge on Sunday in a disappointing goalless draw.
Liverpool's failure to turn their first-half dominance into goals meant they failed to overcome the Blues but Gerrard admitted the focus must now shift away from the title for another year.
The Reds are 16 points behind leaders Arsenal and Gerrard said: "We realise now that we're facing a big challenge to finish in the top four and we've got to forget about the title and focus on fighting for fourth place.
"There are a lot of teams around us who are in good form and playing well so it's important that we don't let our standards drop."