The former England captain will be out of contract in June and has yet to agree terms on extending his 16-year career at Anfield.

Concerns were raised at Anfield after a recent interview with the Liverpool talisman who said that he would consider playing for another team if he did not receive a next contract.

Gerrard has expressed his desire to play on in the Premier League beyond the end of this season, and Reds manager Brendan Rodgers remains confident the 34-year-old will stay at Liverpool.

Pellegrini has no concerns over Gerrard's age, having signed 36-year-old Frank Lampard on a short-term loan deal from new MLS franchise New York City FC.

The City manager believes Gerrard still has plenty to offer, and he will be carefully monitoring his situation at Liverpool over the coming months.

Pellegrini told several national newspapers: "I don't ever rate players on their age. It depends on the money they cost and the number of years they have (on their contract).

"But, like Frank Lampard, Steven Gerrard is a top player and he can continue at a high level for a couple more years."

Rodgers reiterated his intention to retain Gerrard when asked about the progress of talks following Saturday's 1-0 defeat to Newcastle.

He said: 'It's quite straightforward. I had a meeting with Steven's representative explaining the situation. I very much want him to be a part of what we are doing here.

"He's been a brilliant captain for me. I relayed that to the ownership. I'm sure he will go away with that and hopefully his representative will organize a deal.

"Steven is very much part of what I'm doing here. He's a unique player, a unique talent."