Suarez completed a £75million move to the Nou Camp this month, after scoring 31 goals for Liverpool last season and being crowned the PFA Player of the Year.
And Gerrard has revealed the nature of the conversation he had with the forward 12 months ago, when Arsenal were trying to lure him away from Anfield.
Gerrard said: “His dream all along from the first day he came was to play for Real Madrid or Barcelona.
“Last summer when he was out in the cold and training on his own that’s the conversation I had with him. I said, ‘Don’t go to Arsenal’.
“With all due respect to them, I said to him that he was too good for Arsenal.
“I said, ‘If you score 30 goals for us and win the PFA Player of the Year, the press Player of the Year, they (Barca and Madrid) will come back for you’.
“I have experience of those clubs myself and I know if you play well they will come back and come back. So I knew they’d be back for him as well.
“I just thought for his own sake, and to get respect off the Liverpool fans, he had to give us at least one year.”
Some fans remain disappointed at the manner in which Suarez departed the club, having signed a new contract in December with the club having stood by him during various scandals.
But Gerrard says he understands why the 27-year-old left when he did, saying foreign players have different ambitions to home-grown talents.
He said: “A lot of people might still think he should have given us one more, but that’s the same with most foreigners.
“My big dream was to play for Liverpool, and the foreign players’ big dream is to play for Real Madrid or Barcelona – that’s a fact.
“For me, I would have been really sad and disappointed to see Luis go to Arsenal.
“I’m disappointed to see him leave now but I am happy for him that’s he has got what he wants and deserves.
“Since day one he has been phenomenal in training every day and in the games.
“His wife is from Barcelona and I don’t think you can begrudge a player like that who has worked so hard for his dream.
“You can’t go against him when he says he is leaving for Barcelona, but I’d have been disappointed if he had left and gone to Arsenal.”