The 22-year-old Spanish international is now a Liverpool player after finally completing his move from Real Sociedad, and keen Reds fan Ballague feels the duo of Gerrard and Alonso can dominate the midfield battlefield.
Balague said: "Xabi Alonso is probably one of the most gifted midfielders there are in Spain at the moment because he can defend and he can attack.
"He plays in the centre of midfield and you won't find him out wide. He is a goalscorer, distributes the ball well and keeps his position. There is a good wave of opinion out in Spain that he can become the best midfielder in Spain for the next decade.
"He is the brains of the national side and everyone thought he was going to Real Madrid until Liverpool came in for him. Xabi is still a player who can develop and at 22 is not the finished product just yet.
"Adapting to the Premiership won't be a problem for Xabi as he speaks the language well and he will be the perfect combination for Steven Gerrard.
"Xabi comes from a footballing family as his dad Periko Alonso also played for Real Sociedad and Barcelona.
"I think he will be a really good signing for Liverpool and I know he is really excited about playing for them."
