The former Liverpool captain has been out of work since leaving Saudi Pro League club Al-Ettifaq in January 2025 as he searches for a new club.
As pressure grew on Reds boss Arne Slot over the past few months, Gerrard was linked alongside former midfielder Xabi Alonso to take over the club.
However, speaking to GOAL in association with ToonieBet, Heskey has revealed that Gerrard’s chances of taking the job anytime soon are next to zero.
“I think that dream is dead at this moment. Well, dying or died.
“You look at how well (Michael) Carrick is doing right now (at Manchester United). He'd not long come out of Middlesbrough, and he'd been in the system for however long. Stevie's got to really be back in coaching, managing and being on the sidelines.
“I think it's finding the right club, finding the right system, finding the right coaches that you've got to work with because it's not always about you.
“You've got to remember Jurgen (Klopp) was the leader of a pack. He wasn't just that man. He did everything. No, no. He led people to do, and he was moving people around and making sure that they were doing certain things, and he was giving them autonomy as well to do certain things. It's not always about you. You've just got to get the right people.”
For now, Gerrard is set to feature in a Liverpool Legends charity match clash against Borussia Dortmund on March 29 alongside the likes of Pepe Reina, Jerzy Dudek, Sami Hyypia and Gregory Vignal.
His management return will be put off until the end of the season where an opportunity should crop up for him as clubs make changes before the new campaign.