The former Manchester United manager, who retired at the end of last season, made the remark in his new autobiography.
While Gerrard initially stated that he "won't lose sleep" over the comments, the midfielder has told The Clare Balding Show on BT Sport, that he felt a bit "gutted".
"I'm a huge fan of Alex Ferguson and what he's done in the game is fantastic, that's the reason why he's sold that many copies in the first week, I was generally a little bit gutted when I read that, the reaction of the papers, when he said I wasn't a top, top player," said Gerrard.
"He tried to sign me in early 2002, 2003. He tried to sign me again to play for United, I obviously refused, so I can't really take it to heart too much, but I'm a bit gutted because I'm a big fan of his."
Gerrard will captain Liverpool for Sunday's Premier League clash against Hull City.