Liverpool now look set to keep the 22-year-old after failing to offload him before the summer transfer window closed.
Unless he moves abroad, Kent will stay at Liverpool and try to fight for his place in the first-team squad.
Many had believed that he would return to Rangers this season after an impressive campaign for them last year.
The attacking midfielder scored six league goals in 27 games for Gerrard’s side last year.
But Jurgen Klopp announced that he would not be allowed to leave on loan this summer, after he failed to impress on Liverpool’s pre-season tour of America.
Liverpool placed a price tag of £8million on Kent, and there was interest from Leeds United before the transfer window closed.
There was hope that Rangers would make another move for him, but Gerrard admitted defeat in his pursuit of the star after the Gers beat FC Midtjylland 4-2 in a Europa League qualifier on Thursday evening
The manager did, however, confirm that Manchester City winger Brandon Barker was close to finalising a loan move to Ibrox.
“We haven’t signed Brandon yet. He is having a medical. It’s close,” said Gerrard.
“Would that be it in terms of the squad? Who knows.
“I don’t think it is a secret we tried to get Ryan Kent to return.
“Liverpool knew how much wanted the player to come back.
“But I was told a week ago by Jurgen Klopp that he wouldn’t be going out on loan, so I respect that decision.
“We checked again a couple of days ago. I spoke to the technical director Michael Edwards.
“He made it very clear, again, that it wouldn’t be happening so we had to move in a different direction.”