Steven Gerrard is Negotiating a Lucrative New Four-year Contract With Liverpool

The Liverpool captain Steven Gerrard has confirmed that he has opened discussions over a new contract, although the club has denied that terms have already been agreed over a £120,000-a-week, four-year deal.

"I'm in talks to extend my contract at Liverpool and I've never been happier with my football," said Gerrard. "I'd love nothing better than to get this contract sorted and signed. We need to keep all of our big players here so it's very important we get the contracts sorted out so they can be here for a long time."

It is three years since the 26-year-old's last four-year deal, signed at the end of a summer of persistent rumours that he was to join Chelsea. After Liverpool beat Jose Mourinho's side in this week's Champions League semi-final, the club's new co-owner Tom Hicks said that he "can't see Steven Gerrard playing for another club", with the player returning the compliment by saying "the future is certainly looking bright under the new owners". Negotiations are, however, unlikely to be completed today, with the chief executive Rick Parry among several club staff in Athens as preparations begin for the Champions League final against Milan.

Gerrard also revealed that he had not expected the Italians to make it past Manchester United to qualify for the final. "I was really surprised actually because I had confidence that United would go there and get the result they required," he said. "I thought it was going to be a Liverpool-Man United final but credit to Milan because they were excellent on the night and deserved to win the game."

Despite Milan's impressive display, Gerrard is confident that Liverpool will be crowned European champions for the sixth time. "We've got nothing to fear, we've been there and done it before, we've got a fantastic team spirit, the team is playing really well in Europe and we've got one of the best managers in the world, so we have every confidence that we can do it."