The Rangers boss emerged as an early favourite for the job when the Saudi-led consortium gained control.
There was an expectation that Bruce would be removed. Pressure has increased after fans turned on the manager on Sunday following the defeat to Tottenham Hotspur in the Premier League.
It was reported Gerrard featured on a shortlist and, in turn, his odds to become the next Newcastle boss have fallen from 10/1 to 15/2 with Betfair.
Former Liverpool star Steve McManaman reckons his former team-mate would find it “very difficult to turn down”.
He believes it would be a good opportunity for Gerrard ahead of potentially replacing Jurgen Klopp as the next Liverpool manager.
“If what we’re being led to believe, that Newcastle United are going to be turned into the next Manchester City with all this money and power and glamour, it could be an absolutely brilliant opportunity to take that job,” he told Horseracing.net.
"I think it’s an amazing opportunity if these new owners say, ‘we’d like you to take this job as our manager and we’ve got £500million to spend.’ If that was Steven – and I know his principal job will be to manage Liverpool in the end – it would be an incredible opportunity and one that would be very difficult to turn down.
"If these owners want to invest and turn this club into one of the best in England, in Europe, how could you say no?”