The Rangers boss is the firm favourite to replace Dean Smith at Villa Park with the English Premier League side reportedly set to make a formal approach to the Ibrox club for permission to speak with their manager this week.
Villa are said to be prepared to stump up the multi-million pound compenstation fee required to free Gerrard from his Rangers contract, which runs until 2024, as they look to get their man in place in time for their next fixture against Brighton on November 20.
Discussing the move with Rangers legend Ally McCoist on talkSPORT, Agbonlahor said: "I'm sorry Ally, I think you're going to lose him mate.
"I'm hearing reports it's close to being done as well.
"I think for Steven Gerrard it's the perfect club, it gets him to the Premier League, managing in the Premier League.
"Aston Villa, the fifth richest owners in the English Premier League, they've got money to spend, they will give him money to spend in January, if needed.
"Look at the squad of players, that's a squad of players who should be fighting to get into the top six, they have got some really good players in there.
"For me, it would be a great job for Steven Gerrard, it would be a shame for Rangers, he's done an outstanding job there.
McCoist remains hopeful that Gerrard will remain at Ibrox to compete for a second consecutive Premiership title after branding the Villa job a "gamble".
He responded: "The longer it goes on, my concern is growing, it's the best league in the world and Villa are a top team, I really like Villa.
"I'm gutted for Dean Smith, I think he should have been given more time.
"In terms of Steven going there, I still think it's a gamble, I really do, but any job's a gamble."
McCoist added that he would be happy to see axed Villa boss Smith as Gerrard's replacement at Ibrox should the Liverpool legend be persuaded to leave the Glasgow club.
"I would be gutted if Gerrard left but thankful for him winning the title last season. It is a big decision," he said.
“I would take Dean Smith. I would.”