The Italy striker moved to Anfield from AC Milan in a £16m deal in the summer and has scored one goal in seven games for the Reds.
But although he concedes that he had not witnessed much of Gerrard in action before this year, he now places the Liverpool skipper on the same level as Italy legend Andrea Pirlo.
“Gerrard is an amazing player,” Balotelli told Sport magazine. “I had really not seen much of him before this season, apart from for England, but wow.
“I think of him as being at the same level as Pirlo.
“Vision, technique, but he is powerful as well. Stevie can do anything. It’s going to be very difficult for the team to find another player like him in the future.”
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news