The report quoted Gerrard as saying he is tempted to leave Anfield for Madrid during talks with Reds boss Rafael Benitez about his future.
Gerrard is rumoured to have said: "The interest from Madrid is extremely tempting. It is difficult to say no to them. If I were to stay in England, I would only play for Liverpool."
Apparently, Real are prepared to offer the Liverpool skipper £8m a year.