The Reds captain turned 34 last month but enjoyed an outstanding season for the Anfield side as they were eventually pipped to their first league title for 24 years by Manchester City.
Gerrard adapted to a holding midfield role earlier in the season, making 34 appearances and scoring 13 goals for Brendan Rodgers' side.
Lambert, who signed for the Reds earlier in the summer, believes that Gerrard is still one of the finest midfielders in world football and thinks that his new captain can still play on for several more seasons.
Speaking to the club's official website, he said: "He's still one of our best players - still world class, in my opinion. As a deep-lying midfielder he's one of the best.
"Whatever decision he makes everyone is going to be behind him and respectful of it. But, if you are asking my opinion, I think he can go on for a number of years.
"And he's good off the field too - not one to shout. He does his actions on the pitch and he speaks to the young lads and puts an arm around them when it's needed.
"It was top drawer the way he walked off with Raheem Sterling when Raheem was sent off against Ecuador. The young lads aren't intimidated and he's one of the main reasons for that."
Gerrard was part of the England side that were beaten 2-1 by Italy in Manaus on Saturday evening.
Claudio Marchisio gave the Azzurri the lead on 35 minutes before Liverpool striker Daniel Sturridge equalised almost instantly.
However, Mario Balotelli's second-half header was enough for Cesare Prandelli's side to register a victory in the World Cup encounter.