"Gary Neville said [Sir Alex Ferguson] wanted me," Gerrard told the Daily Mail. "But you understand that playing for Manchester United would have been impossible.
"I never would have wanted to play for Manchester United. They are a fantastic club but that rivalry is there, and it's why Gary could not have played for us either.
"Don't get me wrong. It was flattering that, after everything he has done in the game, Sir Alex Ferguson wanted me to play in his team. But that was an impossible situation."
The England international said that the Portuguese coach came back in for him when he took over at Real Madrid, but revealed that he was happy at Anfield.
"The Mourinho thing was different, of course," he added. "[Liverpool] weren't really challenging at the time, so there was something to think about. But I ended up saying no and a year later I said no again.
"He came back when he arrived at Real Madrid two years ago.
"I look at some players who get interest from clubs like Real Madrid and Barcelona and they cause absolute wars to get out and get there. But that has never been me and, again, it just wasn't going to happen. I was happy here. I was settled. I thought all that had gone really."
Gerrard is now England's captain and has won 96 caps for the Three Lions.