Gerard Houllier concedes that the decision was particularly difficult for him to make, but he believes that 23-year-old Gerard has now proven that he ready to lead his boyhood heroes to glory.
Houllier said: "He needed time to mature, and now at 23 I think he is ready. There has been a maturity in his game and his personality.
"I have decided to move the armband to Steven and he will lead the side tonight and in the future. Obviously I spoke to Sami and his response was typically first class. He respects the decision and there was no bitterness or resentment. I know Sami will recognise this is a decision I've taken for the team."
"I have thought long and hard about this. This is not something which should be seen as against Sami. He has been a good captain for us and lifted six trophies.
"This decision will help Sami. I think he was ready to take on too much responsibility at times. I have three leaders in Stevie, Sami and Michael Owen who are all inspirational in their own way."