Rick Parry says the story is a complete fabrication and both he and Rafael Benitez will be doing all they can to keep Gerrard at Anfield.
"Contrary to a story in today's Mail on Sunday I did not meet with Peter Kenyon nor did I agree a deal for Steven Gerrard." said Parry.
"Both Rafa Benitez and myself have made it clear to Steven that we want him to stay and that we see his future at Anfield.
"We are used to the speculation surrounding Stevie but what is disappointing is that a single telephone call from the newspaper to check what are fairly basic facts would have completely demolished the story."
Liverpool will consult their lawyers over this lie tomorrow morning.