Liverpool legend Terry McDermott believes Steven Gerrard has cemented his place as one of the world's best midfielders with his performances at Euro 2012.

Gerrard captained England to top place in Group D, earning the Three Lions a quarter-final clash against Italy in Kiev on Sunday and ensuring Roy Hodgson's side remain unbeaten since he replaced Fabio Capello as manager last month.

The Liverpool skipper has claimed assists in each of England's three games in the tournament to date and is widely regarded as having been one of the stars of the finals so far.

Whilst McDermott agrees Gerrard's form has been incredible, he still believes there is more to come from the Reds' No 8.

"He's been absolutely phenomenal," McDermott told the Liverpool Echo. "For ten years or more, he has been the catalyst for everything at Liverpool, and it is the same with England at the moment. He has been fantastic.

"We all know what a sensational player he is, and how influential he has been for club and country. His performances over the last couple of weeks have simply reiterated that.

"The scary thing is, I don't think he has even hit top form yet! If he is playing his B-game at the moment, then how good will he be when he hits his A-game?"

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Gerrard's versatility has seen him deployed in a variety of positions for England since he made his debut in 2000, but McDermott believes the Three Lions are reaping the rewards from handing the 32-year-old the armband and playing him in his favoured central position.

"There should not have been a debate (about the captaincy), end of," he said. "He is everything you want in a footballer, and in a captain. He has shown that for ten years or more with Liverpool, and with England.

"He has had to be a little bit more defensive because of the way England play, with the 4-4-2 system and the rigid organisation, but he is popping up everywhere, in defence and attack. As captain, he leads by example, and you can't ask for more than that. His work rate is unbelievable."

Hodgson has already admitted he expected to be facing Spain in the quarter-finals.

However, McDermott, who picked up 25 caps during his career, believes the Italians should not be underestimated but feels Gerrard can help steer England into the last four.

"Italy won't be an easy game, nobody is saying it will be," he said. "But they are not unbeatable.

"If Steven can continue the form he has shown in the first three games, and maybe even step it up another level, which I think he can do, then he could be the difference between success and failure.

"That's how important he is to his country."