Gerrard is the favourite to be appointed as new Gers manager after the club parted ways with Graeme Murty this week.
"Ten years ago Rangers were in a major European final," Purslow told Sky Sports.
"The trials and tribulations of that club since then are well documented of a virtual restart from ground zero for the whole club, disappearing from the top table of European football where this once great club proudly sat.
"To associate with a person of the reputation of Steven puts them back on the map.
"Even if they don't succeed in confirming the appointment I may say and on another tough season and another terrible Old Firm result let's just hope that wasn't part of the calculation even being linked with Steven.
"It doesn't look that way does it and even he himself has confirmed those discussions are ongoing, so this looks like it might be a real story (for Rangers)."