Red Gerrard sees green light

Earlier, Liverpool said Gerrard had rejected an improved and extended contract offer. ‘‘We very much regret the decision he has taken’’, Liverpool said in a statement. The five-time European champions also said they had rejected a bid for the 25-year-old Chelsea.

Newspapers reported Chelsea had bid a British record 32 million pounds to prise the inspirational playmaker away from his hometown club. That would eclipse the 29.1 million pounds Manchester United paid to Leeds United for England defender Rio Ferdinand in 2002. Real Madrid are also rumoured to be interested in Gerrard.

Liverpool are reported to have responded to a breakdown in talks with Gerrard over the weekend by offering him a two-year contract extension to 2009 on 100,000 pounds a week. Manager Rafael Benitez said on Monday he wanted the midfielder to stay at Liverpool for the rest of his career and could even become the club’s next manager. Gerrard, who turned down an offer to join Chelsea last year, scored one goal and made another against AC Milan as Liverpool rallied from 3-0 down to reach 3-3 and a penalty shootout victory after extra time in the Champions League final. ‘‘How can I leave after a night like this and all the nights this season?’’ he said in Istanbul. Liverpool are preparing to face Welsh part-timers TNS in their Champions League first round qualifier on July 13. (Reuters)