Martin O'Neill: Rangers are 'so, so bad', Steven Gerrard has nothing to lose

Gerrard confirmed on Tuesday night that he had held positive talks with Rangers over the vacancy at Ibrox, and expects to continue negotiations later in the week.

The discussions come after Rangers sacked Graeme Murty on Tuesday, following Celtic's 5-0 win over their Glasgow rivals.

O'Neill, who won three Scottish Premiership titles with Celtic, believes that because Rangers are so bad Gerrard may have nowhere to go but up, but warned he may not be aware of the scale of the task, saying:

"He hasn't got a clue what he's letting himself in for, but he has been born and bred in Liverpool so he must have an idea. I hope he does (get the job), it would be nice to see him. I think he’d be terrific for Rangers at this stage because it’s unquestionably the worst side that has ever, ever played for Rangers.

"I think the only way is up for him, if that's the case."

Celtic have now won seven consecutive domestic league championships, while Rangers sit in third and could finish as low as fourth this season.