Gerrard, who took office in November, has been placed in solitary confinement.
The 41-year-old, who is an icon in Liverpool after his playing career, will not lead the team against Chelsea at Villa Park tomorrow Sunday and away against Leeds on Tuesday.
"Aston Villa can confirm that head coach Steven Gerrard will not lead the team in the next two Premier League matches against Chelsea and Leeds after testing positive for covid-19," the club wrote.
England recorded 122,186 new covid-19 cases on Friday, which is a record number, writes Reuters.
Under Gerrard's leadership, Aston Villa have won four Premier League victories in six matches played.
Despite the rampant infection, the league clubs decided to play over the Christmas weekend anyway at a meeting at the beginning of the week.