The England midfielder says he will try to use his influence to help convince the Uruguay striker to remain at Anfield but does not expect him to move to a Premier League rival.
The Gunners are believed to have bid 42 million pounds for the Uruguay international, although the Reds brass remains adament he will not be sold.
The striker is now training alone after pushing for a move away from Anfield, with manager Brendan Rodgers wanting an apology before he is allowed to return to first-team duties.
"If I can use my influence to try to make him stay I will try to do that, for Liverpool to move forward it's important we keep our best players," Gerard told reporters. "I'm really confident he won't be going to any one else in England."
The Liverpool skipper was speaking at a press conference ahead of England's friendly against Scotland, and he described Wednesday's Wembley clash as an important part of preparation for World Cup qualification.
"This game is important to our fans and will be like a derby match. We're looking forward to it," Gerrard said. "It's important we keep everyone fit and the squad as strong as possible, but we are confident we can get to Brazil."