Brendan Rodgers' side go into Christmas top of the Premier League, and no team since Liverpool in 2008 have failed to win the title from such a position of strength.
In an interview to be broadcast in full on Sky Sports News on Christmas Day, Gerrard said the aim at Anfield remains a return to the Champions League.
But the Anfield captain is hopeful Liverpool can "surprise a few people" and stay in contention at the top.
He said: "I think if we were to finish outside the top four I think it would be a disappointing season.
"With the talent we've got in the squad and the way we've started, we've set ourselves up with a magnificent chance of finishing in the top four so if we were to let that slip and finish outside everyone would be disappointed.
"The key to us is to finish inside the top four, it helps the club financially to bring players in and to end that long spell without it.
"I think we're title contenders if we're in the title race with 10 games to go - I don't get carried away or change targets or raise expectations around the city just because we've started the season very strong.
"To be in the title race you've got to be there with 10 games to go with a realistic challenge of winning it. I do have confidence and belief in my team-mates that we're capable of surprising a few people this season."
Gerrard is tied to the club until 2015 after signing a new contract in the summer, and his priority is still to see out his career at the club he joined as a nine-year-old.
He said: "If something happens where I fall out of contention or someone else comes along and takes my place and I stop enjoying it, if I still feel I could offer someone else something of course I'd consider it, but for the time being I can see myself seeing it out here."