Speaking to former Liverpool team-mate Jamie Carragher on The Greatest Gamepodcast, Gerrard insisted that not everyone understands how big Rangers are as a club.
He added: "It's massive but unique, if you know what I mean. [Outwith Scotland] I don't think everyone understands the size of Rangers.
"People from Liverpool or from around England don't realise how big Celtic or Rangers are because they only watch the Old Firm games."
The prospect of Celtic and Rangers breaking away from the Scottish leagues to join the English pyramid has been discussed for years, but Gerrard reckons the two rivals competing in England's top flight would be "incredible".
The former Anfield captain continued: "I don't think it would ever happen just because of the amount of power from the other clubs, but I would love to see the Scottish league filter into the English leagues, all of them.
"It will save and help the Scottish game and I think it would be unbelievable. Could you picture a Premier League with Celtic and Rangers in?"