They host Jurgen Klopps side on Tuesday aiming to put another dent in the Reds title hopes.
The visitors are three points behind Manchester City at the top of the Premier League after Saturdays 1-1 draw with Tottenham.
Villa are coming off the back of Saturdays 3-1 win at Burnley which left them 11th and Gerrard wants his men to stand up against his former club.
Liverpool are a world-class team. Arguably, the best team in the world right now. Were well aware of the challenge, said Gerrard.
Ive spoken many times about how I respect the coach and the coaching staff there. You either fear that or you put your shoulders back and try to take it on and find situations where you can have your moments in the game.
Every team on the planet, historically or now, theres always areas or situations that happen in a game where you can hurt them.
Were well aware of the size of the challenge, but its exciting and Im looking forward to it. Big games of football are what its all about.
I know where the team is at and I know that were capable of winning football matches. I know were capable of going on runs to recover situations we did it when we initially came in.
We didnt get too carried away when we were winning games on the spin, and at the same time, when you go on a tough run and suffer a few bumps its important to stick together and have belief in your players.
It was tough no one wants to lose four matches, but I had confidence that with the fixtures we had coming up we could put it right and recover our situation.
My job is to win games for Aston Villa, that will always be the case when Im representing the club. I want to win, fiercely, and that is no different tomorrow.
In terms of Liverpool, the season is over 38 games and they play Aston Villa twice.