The Reds were 5-0 winners against Watford at Anfield in the Premier League last weekend thanks to Mohamed Salah’s four-goal haul.
Liverpool FC hoisted themselves above Tottenham Hotspur and into third place in the Premier League table thanks to their huge win.
The Reds have played one game more than Chelsea FC and Spurs but hold a seven point lead over the defending Premier League champions.
Antonio Conte’s side have a tough game against Tottenham in their next Premier League fixture at Stamford Bridge on Sunday 1 April.
Former Liverpool FC captain Gerrard believes the Reds would be foolish to discount Chelsea FC from the top-four race.
“They [Chelsea FC] are not going to give up,” Gerrard told BT Sport.
“They’ve got a good manager and a good team.
“I think it will boil down to how long Liverpool stay in the Champions League.”
Liverpool FC finished in the Premier League’s top four in Jurgen Klopp’s first full season in charge at the Anfield outfit.
The Reds signed Netherlands international Virgil van Dijk in a £75m deal from Premier League rivals Southampton in the January transfer window.
The 18-time English will take on relegation candidates Crystal Palace in their next Premier League game at Selhurst Park on Saturday 31 March.
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