The 24-year-old Uruguayan joined the Reds from Ajax in January, and has been the club’s most prolific scorer this term with seven goals in 13 appearances.
“To see Luis day in, day out has been a real eye-opener for me”, Gerrard told LFC magazine.
“Having worked with him on a regular basis I think he has the potential to be one of the best in the world,” he said.
Suarez was recently nominated for this year’s Ballon d'Or and is continuing to grab headlines after scoring all four goals in his country’s 4-0 win over Chile.
Despite Gerrard’s absence, Liverpool have continued their positive start to the season, currently lying sixth in the table behind Tottenham Hotspur.
“I think the squad is looking stronger, probably the strongest we’ve had for a long time. Now it’s all about delivering," he said.
“We need to focus on each game and try to build on what we’ve shown over the past 20 or so games.”
“The fans demand not just effort, but quality. With all due respect, at some other places you get away with performances that simply aren’t good enough.
"At Liverpool your standards have got to be so high every single week. You have to perform every time. That's what I've had to do every year and that's what the new lads are coming to terms with."
