Sterling has scored five goals in 21 Premier League appearances for the Anfield outfit this season, earning plaudits for his recent displays.
And Gerrard believes the best is yet to come from the 19-year-old, with whom he does not relish one-on-one duels on the training ground.
"He is the toughest in our squad," the skipper said. "I don't go near him in training because if I do, there is only one winner.
"He just needs to keep learning and listening to (Liverpool manager) Brendan Rodgers and the experienced players in the dressing room and believing in himself. If he does that, he'll be all right."
With Roy Hodgson beginning to mull over his England squad for the 2014 FIFA World Cup, national team skipper Gerrard feels Sterling can force himself into contention.
"He has been in great form over the last couple of months and I'm sure Roy Hodgson is watching him very closely," he continued.
"His form of late has been sensational and if he continues that until the end of the season, we will see him at the World Cup.
"Now he just has to get that consistency in his game. If he gets that consistency, he is going to be a frightening talent."
Fourth-placed Liverpool host Swansea City in the Premier League on Sunday.
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