Looking ahead, Gerrard says, "It all depends on what decision Luis Suarez makes in the next few weeks. If we lose him then the challenge becomes even more difficult."
Transfer talk: Steven Gerrard thinks Liverpool need to keep Luis Suarez
Suarez still appears keen to leave Anfield, although he has stopped short of submitting a transfer request or seeking legal recourse.
Arsenal have had two bids rejected for the Uruguay international striker, the last one of £40million plus £1 which they believed would trigger a sale clause.
Liverpool have always maintained they merely had to inform the player of offers of that magnitude and have been steadfast in stating Suarez is not for sale.
Anfield captain Gerrard certainly does not want to see the 26-year-old leave – particularly to a club he sees as a direct rival in the race for Champions League football.
"The likes of us, Tottenham and Arsenal are fighting to sneak into the other place that's available.
"Where we sit actually right now, it all depends on what decision Luis Suarez makes in the next few weeks. If we lose him then the challenge becomes even more difficult. It's that simple.
"If he goes to Arsenal, it obviously makes our season that little bit more difficult.
"It strengthens them an awful lot and they are our rivals for a top-four position. From the club's point of view it doesn't make sense at all, no matter how much money is put on the table."
Although Gerrard does not like the idea of Suarez leaving for north London, the midfielder would accept his team-mate leaving for Spain.
The 33-year-old continued in The Independent: "If he was to go abroad to a Madrid or Barcelona I would totally understand it. He's a South American. He's good enough to play in either of those teams.
"From a family point of view, it's where they all want to be. Javier Mascherano, Xabi Alonso, some of the top players I've played with – their dream was to play for Real or Barcelona.
"If I was him I would wait for one of those two clubs because I think he's good enough to play for them."
Gerrard, who had his own doubts about remaining at Anfield when Chelsea twice came calling, admits he has been trying his best to persuade Suarez to stay.
"I've spoken to Luis loads and of course I'm trying to get him to stay," Gerrard told the Liverpool Echo.
"We will have to wait and see if I have any joy. It's a difficult one from a team-mate's perspective as you've got to show a player respect. Luis is his own guy and makes his own decisions. But Luis Suarez knows what I want him to do, don't worry about that."
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