The Northern Irishman has been a key cog at the heart of the team’s midfield this campaign.
The 36-year-old’s contract expires at the end of the season.
Davis has started the last nine league games for Rangers, his role growing in importance with Ryan Jack missing.
Talks are expected regarding a new deal especially after Gerrard revealed the player’s importance to the team.
"He's extremely important both on and off the pitch,” the Rangers boss told Sky Sports. “He sets standards that we try and match on a daily basis.
"The level he's playing at, his consistency, his hunger for the game is still there.
"He's a top professional so a lot of people look up to him and follow what he does.
"For me, it's an absolute must that he's here beyond this season.”