The former captain has also backed the potential signing of Aston Villa's Christian Benteke.
Sterling completed a big money move to Manchester City last week after months of intense speculation about his future at Anfield and where he may end up this summer.
It is a big blow for Liverpool to lose one of their star men before the start of the new season but Gerrard says Ibe has all the qualities to step into that gap left by Sterling’s exit and excel in Brendan Rodgers’ side.
“I think it’s down to Jordon to grasp that position now Raheem has gone,” the Daily Mail reports him as saying.
“If he can be mentally strong, hungry and want it, the stage is there for him to be a terrific wide-man for Liverpool. He’s certainly got all the tools. I am sure Brendan will give him the same time he gave Raheem and you saw how much he progressed Raheem over the years.”
Benteke a terrific talent
The midfielder has also backed the incoming signing of Christian Benteke from Aston Villa.
The forward is expected to complete a move to Anfield at some point in the near future, with the Reds having agreed to pay his £32.5million release clause to make the move happen.
It has been suggested that the Belgian could be another flop for Rodgers as his style of play doesn’t fit with Liverpool’s, but Gerrard isn’t one of them, saying that Benteke he has been unplayable against them in the past.
“I think he’s a terrific talent,” he added.
“We’ve faced him a number of times and he’s been unplayable. You can’t put all the responsibility on Daniel Sturridge, so hopefully he comes and does well.”