Last year Gerrard said he didn't want to join Chelsea, at least for the time being, and stayed at Liverpool. I think he may prefer to join Madrid than go to London, but I don't know what's going to happen.
Players want to win trophies and in the last six years Stevie has done that at Liverpool. The Premiership title is next on the list, but he has won everything else at the club and Benitez has built his team around him, so he won't want him to leave.
I personally don't know what is going to happen, but a few former players and many of the fans now believe he will go. When Graeme Souness left for Sampdoria we moved on, and if Gerrard goes we have to find a replacement. Benitez has made four new signings already and hopefully if he can add another two big names then things won't be so bad.