Liverpool captain Gerrard announced his international retirement on Monday after 114 England appearances in 14 years, 38 of them as captain.
Manager Brendan Rodgers has since confirmed he expects a contract extension for the 34-year-old to be a formality and Williams believes Liverpool fans can look forward to a fresher Gerrard next season.
"It's a massive boost for the fans," the Liverpool Ladies midfielder told Sky Sports.
"I think he's been a great servant to English football, a fantastic role model and a fantastic player who has led the (national) team very well.
"But of course Liverpool are going to benefit from his international retirement. It will give him more time to rest up when there are international fixtures to make sure he is good going into the games for Liverpool."
Williams, who is set to earn her record-breaking 130th England cap next week, admits England will miss Gerrard but has urged the youngsters in the set-up to stake their claim for selection.
"He's a player that I really admire, he's been rewarded for all the graft and hard work he has put in during his career with the chance to lead England into a World Cup," she said. "And his passing range is one of the best I've ever seen from an England player alongside Paul Scholes.
"He brings so much to the team, he leads by example and the quality he brings on the pitch is second to none.
"But there are certainly a lot of youngsters coming through like (Jordan) Henderson here at Liverpool who is learning from Gerrard in that role.
"He's improving and you've also got the likes of (Jack) Wilshere and (Adam) Lallana. There are a lot of midfielders who are coming through and doing great things.
"We're going to miss him loads but at the same time it gives some of the youngsters the opportunity to come through."