The Reds have confirmed that the setback the skipper suffered in training last week is serious enough to rule him out for the rest of the campaign.
"We still don't know definitively what the problem is, so we will wait until we get a precise answer from the people he has been to see," said Kenny Dalglish.
"But he will not be involved again this season, so that's Steven as well for this season.
"It's a blow to have anybody out, but it's more disappointing for the players than it is for us. We just have to get on with it.
"Without being disrespectful to the players who are injured, the most important ones are the ones who are fit because they're the ones who can be chosen.
"At this particular moment in time, I'm as good a player as Steven!"