Although Terry, as well as Aston Villa's Gareth Barry, are the favourites for the role Rafa Benitez believes Gerrard deserves to keep the captain's armband.
"Steven has captained England before and he has shown he can do the job well so I am surprised that there is talk that he might not be captain in England's next game," said the Liverpool boss.
"It is not up to me to make the decision and Capello is lucky because he has some very good candidates for captain but if he was to ask me I would tell him that Steven is the right man.
"Terry and Barry are both good players and good captains for their clubs so they are good options for England. But I see Steven every day, in matches and in training, so I know what he brings to Liverpool and that is why I think he would be the right man.
"If you think back to Istanbul and the FA Cup final against West Ham in Cardiff you will remember how inspirational he can be as captain."