The former Liverpool and England captain has been put forward for his home city's highest civic honour in recognition of his services to national and international football, as well as his charity work.
Gerrard has been recommended for the accolade by Mayor of Liverpool Joe Anderson, with councillors expected to formally confirm him as a recipient on January 18.
"I was stunned and overwhelmed when I heard my name was being put forward," said Gerrard in a statement. "Liverpool is my home city and so to be acknowledged in this way leaves me speechless.
"To even think about getting such an award makes me feel very humble and of course immensely proud."
Gerrard turned out 710 times for Liverpool, winning nine trophies before leaving England to join Major League Soccer outfit Los Angeles Galaxy and later call time on his playing career.