The Italy international now plays alongside the Reds captain at Anfield following his move to Merseyside from AC Milan in the summer transfer window.
Gerrard has faced criticism of late, with some suggesting that the midfielder is struggling to maintain his form now that he is 34 years of age.
However, Balotelli has claimed that Gerrard is one of the best footballers that he has played with and believes that the midfielder is in the same class as Italy veteran Andrea Pirlo.
"Gerrard is an amazing player," Balotelli told Sport magazine. "I had really not seen much of him before this season, apart from for England, but wow. I think of him as being at the same level as Pirlo.
"Vision, technique, but he is powerful as well. Stevie can do anything. It's going to be very difficult for the team to find another player like him in the future."
Gerrard and Balotelli are expected to play in this Sunday's Premier League match against Queens Park Rangers.