I'm staying! Gerrard astonishes Liverpool with U-turn

The England midfielder seemed set to quit Anfield last night after the Reds revealed he had turned down a new contract offer, believed to be £100,000 a week.

Liverpool chief executive Rick Parry revealed he had persuaded Gerrard that the club did not want to sell him in emotional phone calls late last night and early this morning.

Parry told Sky Sports News: "Stevie had decided to stay. The last few days have been so difficult for him and I apologise to Stevie if I misread his emotions. But, in the last 24 hours he has reflected on it and decided to stay and it's what we wanted all along."

Liverpool turned down an offer from Chelsea, said to be £32million, but it seemed only a matter of time before the 25-year-old England midfielder would leave the European champions to join the Premiership champions.

Some Liverpool fans burnt their Gerrard shirts as disappointment turned to fury but, for the second summer running, Gerrard had a last-minute change of heart.

"He realises how much the club means to him genuinely," explained Parry. "It's a little bit like last year but even more dramatic.

"Even when he said he was going, I don't think the language he used suggested he really wanted to go. He never said 'I want to go' it was 'it's been so difficult in the last few days I don't think I can come back.' He never actually said 'I want to go'."

He added: "I guess after Istanbul I thought I knew where we were going but he clearly thought, for whatever reason, that the club wasn't as enthusiastic about keeping him as we might have been. He was anxious.".

Gerrard's shock change of heart means that Chelsea have missed out on the 25-year-old England midfielder for the second summer in succession.

Gerrard appeared destined for Stamford Bridge at this time last year but then opted to stay for a further year, giving Liverpool time to show some improvement.

The Reds responded by winning the Champions League and on the night in Istanbul Gerrard said: 'How can I leave now'.

But, in the Liverpool skipper's mind, the Reds were guilty of dragging their feet on negotiations to improve a contract which had two years to run and he began to feel that the club wanted him out of Anfield.

Parry said: "It was obviously praying on Steven's mind. There were one or two issues about the contract which he took to be the club dragging its feet.

"We've had some emotional moments together over the last 24 hours and we've cleared all of that up....I don't think it will happen again."

"It was two late-night phone calls and a few phone calls this morning. I think he just wants a couple of days to go away and clear his head now because it hasn't been easy for him."

Asked if the way was now clear for the club to hammer out a new contract, Parry replied: "I think it's hammered. I don't think there's an issue. We all understand exactly what is required."

Parry believes it was memories of Liverpool's dramatic Champions League final win over AC Milan in Istanbul rather than the protests by fans that persuaded Gerrard to stay.

"To be fair to Stevie he's not staying because he is concerned about negativity from fans. The point I made to him on Monday was 'think of the fans in Istanbul...how can you leave after that?' It's more that image (Istanbul) that's been on his mind, not the protests.

"It's (the contract talks) that have been praying on his mind. He's found it complicated but deep down it was always going to be a difficult decision for him to say he wanted to go.

"Obviously we're absolutely thrilled that he's staying and we're more certain than ever that he's fully committed and that this is where he wants to be."

Chelsea, having made their bid yesterday, did not come back with an improved one for Gerrard, and must now turn their sights elsewhere.