Gerrard said: "It's a good appointment for Chelsea _ I'm not so sure it's good for Liverpool," said Gerrard, who has already faced the Italian manager twice in Champions League finals against AC Milan.
"I am sure the Chelsea players are very excited. You look around the world, there are certainly many good managers and Ancelotti is certainly one of them."
Chelsea believe Ancelotti can restore stability to the club which has gone through five managers in less than two years.
Gerrard was part of the Liverpool side which beat Ancelotti's Milan on penalties in the 2005 Champions League Final after fighting back from 3-0 down in 2005 - but also part of the Anfield side which lost to Milan in the 2007 Final.
He said: "We played two Champions League finals against him, won one on a fantastic night in Istanbul. But the second time around he did us, they beat us and he was spot on tactically.
"So I think Chelsea have appointed a very good manager. I am sure he will adapt (to managing in England), that's what the top coaches do, they adapt to whatever league they are coaching in."
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