Alli, who is just 19 years of age, has established himself in the Tottenham first team and has also played six times for the England national team.
The youngster is arguably the best teenage footballer in the Premier League at the moment and has been in superb form throughout the campaign.
Former Liverpool midfielder Gerrard has revealed his admiration of Alli in The Telegraph and has also given his English compatriot some sound advice.
“Without watching him week in, week out, I’ve taken an interest in Alli's career since he was in League One, and I'm seriously impressed by his progress for Tottenham and England this season,” the Los Angeles Galaxy midfielder wrote in The Telegraph. “There is so much to like about how he plays the game. He has technique and attitude. It’s not just his skill I admire, but his temperament.
“I like his football arrogance where he absorbs every challenge and gets on the ball as if he belongs on the biggest of stages. And I like that touch of nastiness he has – not in a bad way – but where he is not going to be intimidated on the pitch but will bully opponents rather than let himself be bullied."
“Alli has earned all the praise coming his way, particularly after such a mature performance against Germany," added Gerrard. "What I would say to him – and this is something he might not realise until later in his career - is keep that mindset as long as you can because playing football is never more enjoyable or less stressful than when you first come to the fore.”
Alli has scored seven goals and created 42 chances in 29 Premier League appearances for Tottenham so far this season.
The England international midfielder has a pass accuracy of 75% and a shot accuracy of 62%, and has won 35 headers, 26 dribbles and 46 tackles.
Spurs will take on Liverpool away from home at Anfield in the Premier League on Saturday evening.
Alli is likely to start the match, and Gerrard has suggested that he will have a point to prove against the Merseyside outfit.
“He might also feel he has a point to prove to Liverpool,” Gerrard wrote in The Telegraph about Alli. “Much has been made of how my former club failed to sign Alli when it seemed we were favourites.
“I’m not sure how close we were, but it’s too easy to start calling out clubs for not taking a chance on him. Liverpool certainly weren’t alone.”