Sterling has been a revelation for the Reds this season.
Gerrard told liverpoolfc.com: "He's going to be fantastic. He still has a lot to learn but the talent is certainly there. At 18 years of age he's still a baby really but he has had a major impact this season. He's going to be a top player for both Liverpool and England.
"I think everyone just needs to give him time to learn the game and there's no better manager to have here than Brendan, who will use him at the right times. He's a good kid. He's always trying to learn on the training ground. He's quite quiet really."