The 34-year-old announced on Monday that he will not play for the Three Lions again, bringing the curtain down on an impressive 14-year career with the national team.
However, Eriksson, who coached Gerrard for England, has suggested that the midfielder could carry on playing.
"It's a pity because he is and was a great, great player for Liverpool and England," he told Sky Sports News.
"I feel sorry for England and for Steven. I think he should have carried on because as long as you can qualify to play for England I think you should do it.
"Maybe his body is a little bit tired. Maybe he can't do twice a week all year round. I don't know. He is probably saying he can't do it anymore."
Gerrard is in third place on the list of England's all-time appearance makers with 114 caps.