Gerrard, 28, has two years left on his contract, worth about £110,000 a week, and yesterday revealed he would welcome the chance to sign a four-year extension.
"It's great for Liverpool and the supporters," Rush said. "Stevie is a fantastic player and the fact he wants to commit to the club is great news.
"I'm not surprised because it's a good time for Liverpool. If Gerrard commits long term it will give even more of a buzz to the place."