Gerrard has also admitted he would have liked to have Gareth Barry at the club.
Barry joined Manchester City in a £12million move from Aston Villa on Tuesday.
Gerrard said: “He is English and you need English players at your club now.”
Gerrard continued on their season: “Has the season been a success or failure at club level? I think failure is a bit strong but you’ve got to be realistic and look at the big picture.
“We’ve finished the season without a trophy which hurts. But from a Liverpool point of view, a lot of progress has been made.
“We are getting really close to becoming champions. Our next two or three signings as far as we are concerned are crucial to push on and try and go one better than this year.
“I am certainly not sitting here proud of not winning a trophy.”
He added on new signings: “How do we go to the next step? Get more players of Torres’ level. He is a massive player for us. You saw the impact he made in his first season and how good he has been when fit this year.
“If we can keep Torres fit, and had a little bit more quality to our squad, we can become champions.
“Manchester United won the league because they had that spark coming off the bench, that little bit more strength in depth.”