The 24-year-old has enjoyed an electric start to the new season following his move to Anfield from Stamford Bridge at the turn of the year, netting six Premier League goals in seven games.
England captain Gerrard says Sturridge has huge potential at Anfield, and believes that Reds manager Brendan Rodgers is poised to get the very best out of him.
“You wonder why [Manchester] City have moved Daniel on and why Chelsea have let him come to us,” said Gerrard.
“I had seen signs and huge potential. But I hadn’t seen it on a consistent basis.
“But working with him daily and seeing the form he has been in of late, it is scary to think what he might become.
“I have no hesitation in saying he has the potential to be world class. He is that good.
“The key for Daniel was to have a manager who believed in him, play him every game and build a team around him that gave him a platform to prove he is a top player.
“So far, so good. But what he has produced at Liverpool everyone is waiting for with England. Hopefully that is what we see over the next seven or eight days.”
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