Gerrard has failed to produce his best form for his country in recent times but Sheringham has no doubts he could now prove the key in helping England win the World Cup in South Africa.
Sheringham said: "I love the fact that Gerrard has been made captain. I am obviously sorry for Rio, but it might make Gerrard come out of his shell and realise how good he is.
"Everybody in England knows that he is in the top three players in the world. I think he is fantastic.
"If he goes out and leads us on I think we have a great chance. If he is playing up there alongside Wayne Rooney it will be great."