The England midfielder is unhappy Liverpool have yet to make him an improved offer following last season's UEFA Champions League success, opening up the possibility of a big-money move to Chelsea or Real Madrid.

He has two years of his current deal to run but it has been rumoured that he is unhappy because the Reds did not open talks as quickly as he had hoped.

Gerrard indicated his desire to stay at Anfield in the immediate aftermath of Liverpool's stunning European Cup triumph over AC Milan in May and thought the issue would be dealt with almost instantly.

Instead, just nine days away from Benitez's men beginning the defence of their trophy against Welsh minnows Total Network Solutions, Gerrard looks further away than ever from agreeing a new deal.

Chief executive Rick Parry knows unless his future is resolved one way or another this summer, his vast market value will begin to plummet.

Liverpool spokesman Ian Cotton insisted Sunday the Merseyside giants do not want to lose their talisman.

"Our position is very clear," he said. "We want Gerrard to stay at the club."

Gerrard has received no improved pay offer from Liverpool and no more talks are planned, according to The Sun, who report Gerrard had a stand-up row with Benitez on Saturday.

The Daily Mirror reports Gerrard has broken off all contract talks and also claims an "angry exchange" between the player and his manager at Melwood training ground.

Chelsea will now launch a British transfer record bid in excess of 30 million pounds for Gerrard, according to the Daily Star, while the Daily Express report Gerrard's patience snapped as the Anfield club dragged their feet over a new deal.

But last week Spanish reports claimed that Gerrard had admitted to Benitez his interest in a move to Real Madrid, who are said to be willing to more than double his wages to over 8 million pounds a year.

The Daily Mail also say Gerrard's long association with Liverpool is drawing to a close and that Chelsea manager Jose Mourinho has been alerted.