The Wales international has been with the Gunners since 2008, and enjoyed his second-best scoring season for the club during the 2017-18 campaign.
Ramsey will see his contract with the capital club expire next summer, however, and the 27-year-old has not given any guarantees over his future at the Emirates Stadium.
Liverpool have been linked with a move for the midfielder, and Saunders has said that he would be a terrific signing.
"When you first said it, my reaction was 'it will make them stronger, having Ramsey in the squad'. He covers more ground than everyone almost every week, and he scores goals and makes goals; he's a good footballer with a good brain," Saunders told talkSPORT.
"Liverpool have signed Fabinho and [Naby] Keita – they look really good – and Fabinho is more like [Patrick] Vieira, where he will sit in front of the defence. Then you've got Keita and Ramsey... I can see that.
"I think Aaron Ramsey will make Liverpool stronger. I think he'd be a great signing for Liverpool. If Liverpool sign him, they definitely get stronger. What a midfield that would be – Ramsey, Keita and Fabinho."
Ramsey scored 11 times and registered 12 assists in 32 appearances for Arsenal during the 2017-18 campaign.