Allen was spotted in the crowd at Anfield during Thursday night's 3-0 win over FC Gomel in the Europa League.
Despite Allen's presence, Gerrard insisted that he had to be "careful" over what he says about any potential move.
"I think it would be very disrespectful of me to talk about Joe Allen as a Liverpool player just now, but he's a very good player," the 32-year-old told reporters.
"I'm sure if we do manage to get his signature on the paper he'll bring a lot to our team but at the moment I've got to be very careful."
Gerrard's strike against the Belarusians on Thursday was his 150th goal for the Merseysiders.