The England captain believes the Reds can be considered title contenders if they are still in the race with 10 remaining but is adamant that finishing in the top four is paramount
Brendan Rodgers' side currently lead the way at the top of the Premier League, with Saturday's 3-1 win over Cardiff City propelling the Merseysiders above Arsenal and to the summit of England's top-flight.
But a cautious Gerrard is adamant that ending the campaign in the Champions League spots remains the primary aim and is not getting carried away with the Reds' position in the table.
He told Sky Sports: "With the talent we've got in the squad and the way we've started, we've set ourselves up with a magnificent chance of finishing in the top four so if we were to let that slip and finish outside everyone would be disappointed.
"The key to us is to finish inside the top four, it helps the club financially to bring players in and to end that long spell without it.
"I think we're title contenders if we're in the title race with 10 games to go - I don't get carried away or change targets or raise expectations around the city just because we've started the season very strong.
"To be in the title race you've got to be there with 10 games to go with a realistic challenge of winning it. I do have confidence and belief in my team-mates that we're capable of surprising a few people this season."
The England captain, 33, also conceded that he would be prepared to leave Liverpool if he falls out of first-team favour in the future.
He said: "If something happens where I fall out of contention or someone else comes along and takes my place and I stop enjoying it, if I still feel I could offer someone else something of course I'd consider it, but for the time being I can see myself seeing it out here."