The Merseyside outfit were 5-0 winners against 2004 champions FC Porto in the round of 16 after Sadio Mane scored a hat-trick in Portugal in the first leg.
Liverpool FC were pitted against Manchester City in the last-eight draw having scored more goals than any other team left in the European competition.
Manchester City, on the other hand, were 4-2 aggregate winners against Swiss side Basel in the Champions League round of 16.
The Reds are the only top-flight team to have beaten Premier League leaders Manchester City in the 2017-18 season.
Liverpool FC have won the European Cup on five previous occasions, while the Citizens are looking to win the Champions League for the first time.
Former Reds captain Gerrard, who lifted the Champions League title in Istanbul in 2005, admits the quarter-funal tie is too close to call.
“It’s the kind of unmissable match you genuinely get enthusiastic about and can learn so much from,” Gerrard told Liverpool FC’s website.
“It’s top-class footballers looking to go toe-to-toe with each other in a very dominant, attacking style under two hugely respected managers who have very clear philosophies.
“It’s an exciting draw for both teams and both will believe they can progress through to the semis. We’ve seen some amazing games of football between them recently, and from a neutral point of view, I think it’s a 50-50 tie: City have shown their unbelievable quality this season and Liverpool have proven they can better any team in a game – including City.
“Now from a biased point of view, I’ve got every confidence that Jürgen Klopp and the team can deliver over both legs because they’ve shown they can do it. The manager’s got a great record in Europe, he knows Pep Guardiola well, and the opposition inside out.”
Liverpool FC are in third place in the Premier League table and two points adrift of Manchester United.
The Reds signed Netherlands international Virgil van Dijk from Southampton in the January transfer window.
Liverpool FC are looking to win the Champions League for the first time since 2005.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news