The England international midfielder was inspirational for Liverpool this season, leading the club to the Champions League final against AC Milan for the second time in three years.

"I'm in talks to extend my contract at Liverpool and I've never been happier with my football," Gerrard told Liverpool’s official website on Friday.

"I'd love nothing better than to get this contract sorted and signed, so I can understand where he's coming from."

Gerrard said he was surprised to see Milan beat Manchester United in the Champions League semis and set-up a repeat final against five-time European champions Liverpool.

"I was really surprised actually because I had confidence that United would go there and get the result they required."

"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."

In the 2005 final, Milan were leading 3-0 at halftime but a stunning comeback from Liverpool in the second-half helped them claim a draw and win the prestigious title in a penalty shootout.

"I'm sure they do want to make amends because I'm sure Istanbul hurt them. They have a chance for revenge now but me and the boys are going to be ready for that and we're looking forward to it."

"I'm confident we can go there and bring the Cup back home. They're a fantastic team and we know it's going to be really difficult so we need to be right at the top of our game," he added.