After a brief spell on loan at Deportivo de La Coruña, he then enjoyed numerous successes with Tranmere Rovers after joining the club in 1987.
After scoring two goals against Cardiff City on his debut, he established himself in the first team as the "Latics" battled away in the lower half of the Second Division table in 1978–79, 1979–80, 1980–81, and 1981–82.
[8][9] The second round draw paired Wrexham with the previous season's European Cup runners-up, A.S. Roma, managed by Sven-Göran Eriksson.
At home, in extra time in the second leg, Wrexham matched the two goals by Patricio Yáñez to level the fixture at 2–2.
[13] With the Spanish league extended into the summer, Steel was allowed to go out on loan at Deportivo de La Coruña at the end of the 1986–87 season.
[14] He featured in four Segunda División games at Estadio Riazor, as Eusebio Ríos's side made an unsuccessful bid for promotion into La Liga.
He moved for a then club record transfer fee,[15] with the manager Johnny King looking to use Steel to act as target man for striker Ian Muir.
Tranmere were the surprise package of an otherwise derided tournament, beating First Division sides Wimbledon and Newcastle United before losing on penalties to eventual winners Nottingham Forest in the semi-final.
[17] Steel scored with a massive looping header against the Tottenham Hotspur side of Gary Lineker and Paul Gascoigne[18] in a 2–2 draw in the next round to earn a replay.
Club record scorer Ian Muir gave Tranmere an early lead with a volleyed strike.
Devon White gave Bristol Rovers an equaliser early in the second half, before Steel headed a late winner.
Once again, Rovers made an appearance in the Football League Trophy final, this time losing 3–2 to Birmingham City, with Steel again on the scoresheet.
[19] The 1991 promotion meant Steel played his last season at the level at which he began his senior career, England's second tier.