Gerrard underwent groin surgery in March and was expected to make his return against West Brom, but suffered a setback in training the Friday before the game.
“We still don’t know definitively what the problem is,” said Dalglish.
“We will wait to get a precise answer from the people that he has to see but he won’t be involved again this season.”
Dalglish added: “It is a blow to anyone but it’s more disappointing for the players than it is for us, obviously.
“We just have to get on with it and without being disrespectful to the players who are injured the most important ones are the ones who are fit.
“They are the ones who can be chosen. At this particular moment in time I’m as good a player as Steven.
“We know where we stand, we just have to get on with it. There is no point feeling sorry for ourselves, we have to accept that’s the position we’re in and get on with it.”