The 32-year-old, who has remained loyal to the Reds throughout his career, despite interest from Real Madrid and Chelsea, has been told by former England manager Sven-Goran Eriksson that he will never win the title with the Merseyside club.
When asked for a response to Eriksson's claims, Gerrard told Sky Sports News: "I don't think we're miles away.
"We have to be realistic and we finished eighth in the league last year, but we got to two major cup finals which shows that we are a good team and we can compete with anyone on our day.
"If we find a better level of consistency at the club, I think we can find ourselves higher up the table than last year. Who knows what's around the corner? For me, I just take each game as it comes and hopefully before I hang my boots up I can realise the dream of winning it, but I'm also realistic as well."