The 26-year-old, who cost the Reds £22.7 million back in 2011 and was shortlisted for the FIFPro World XI in 2012, has bagged an impressive 23 goals this term, including a haul of 18 in the Premier League.
"For me he's been player of the year, across this league and a lot more leagues," Gerrard told BBC Sport.
|20/1||Luis Suarez is 20/1 with Coral to score a hat-trick against Zenit St Petersburg
"How much better can he get? I'm not sure, but it's a scary thought if he does improve on how he's been performing this season."
Brendan Rodgers's side trail Zenit St Petersburg 2-0 ahead of the second leg of their Europa League last-32 tie at Anfield on Thursday and the England skipper is hoping Suarez can produce a bit of magic to keep the fixture alive.
"You remember top players for games like this - important goals and big performances that turn situations in your favour," Gerrard added.
"We're all there behind him as well - he's not on his own - but I'd love nothing better than for this game to be decided on a bit of magic or brilliance from him.
"With the season he's had, I think he does deserve it."