That's the view of Rangers legend Ally McCoist.
It comes as the Liverpool hero is heavily linked with the vacancy at Middlesbrough, after Rob Edwards departed for relegation-threatened Wolves in the Premier League earlier this week.
Gerrard has been out of work for almost a year when he left Saudi Pro League side Al Ettifaq.
He has continued to live in the Middle East, but has been back in the UK for some punditry work.
Gerrard was close to returning to Rangers just last month when Andrew Cavenagh and Paraag Marathe sought him to replace Russell Martin.
However, Gerrard pulled out of the race to become the club's net head coach, insisting the timing wasn't right.
McCoist told talkSPORT Bet: “It's difficult. The bottom line is that we'll never know. I know the fans, myself included, were very keen on Steven coming back (to Rangers).
“I thought it'd have been a good move, but he obviously saw something that he didn't fancy. Steven's next job, I'd suggest, is vital. He has to get it right.
“Steven has probably looked at the club right now, the level of the playing staff, people above him and something hasn't taken to his liking.
“From that point-of-view, he'd probably tell you that he's made the right decision.”
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With pressure mounting on current Leeds head coach Daniel Farke, McCoist revealed a snippet of information he'd heard through the grapevine about 49ers Enterprises eventually getting their man that way.
“People have said to me, would Gerrard be interested perhaps in the Leeds job," he continued. "You’ve got to appreciate that there’s already somebody in the Leeds job. Big club.
“And I think it’s really important for Gerrard, and I’m sure he will want back into the game, I don’t have any doubt about that, but I think his next appointment is absolutely vital for him.”