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Gerrard has declared his intention to quit his only club after rejecting Liverpool's offer of a new contract.
The two parties have been engaged in talks in a bid to end 12 months of uncertainty regarding his future on Merseyside.
Chelsea were keen to sign the midfielder last summer but Gerrard opted to reject the club's overtures to stay with his boyhood heroes.
The Reds' recent success in the UEFA Champions League final against Milan appeared to sway Gerrard into committing his long-term future to Rafa Benitez's side.
But discussions regarding a new deal have broken down in recent days and Gerrard's relationship with Liverpool's top brass is now beyond repair.
Liverpool have confirmed that talks to extend Gerrard's deal, which currently runs until 2007, are now over after the skipper expressed his determination to leave.
"The club has made it crystal clear we want to keep Steven at Anfield," read a club statement.
"Sadly, he has told us this afternoon that he will not accept our offer of an improved and extended contract because he wants to leave Liverpool.
"We very much regret the decision he has taken."
Gerrard's decision to publicly confirm his eagerness to quit Liverpool will now spark a transfer scramble for his services.
Chelsea have already confirmed their initial offer for the 25-year-old, believed to be in the region of £32 million, has been rejected and they are likely to come in with a revised bid.
Real Madrid are also interested but lack the financial muscle to compete with the Premiership champions and that could leave Chelsea as the sole realistic bidders for Gerrard.
The Reds will now be left in the position of trying to negotiate the best price for their midfield powerhouse and it is likely a British transfer record fee will be required to secure Gerrard's signature.
[URL]http://skysports.planetfootball.com/LIST.ASP?HLID=289598[/URL]
> AfroJoe wrote:
> Too good for the Champions of Europe?
>
> That doesn't quite add up. Surely that means he's too good for
> Chelsea and Real Madrid as well...?
>
> So you think you are the best team in Europe?
>
> Ahahahahahaha, you dont even come in the top 3 best premiership
> teams.
Since when were Juventus, champions of Italy hailing from Turin, in the Premiership mate?
> Too good for the Champions of Europe?
>
> That doesn't quite add up. Surely that means he's too good for
> Chelsea and Real Madrid as well...?
So you think you are the best team in Europe?
Ahahahahahaha, you dont even come in the top 3 best premiership teams.
'Surely you'll sign a new contract now...?'
'Eeehh well its certainly positive eeeehhhh...'
Wouldn't give a definate answer then so it was always likely that Gerrard was leaving.
That doesn't quite add up. Surely that means he's too good for Chelsea and Real Madrid as well...?
Gerrard is too good for Liverpool anyway.
People here are intelligent enough to grasp the concept of clicking a link to open up a news story.
> "Oops i didnt mean that!!1"
>
> Basically translating to:
> "i felt my word count needed a boost and thought you'd all be a
> bunch of idiots and not notice."
personally i don't give crap about my word count
all i did was copied and pasted it from that link!
I'll edit it...