"Of course I would welcome him back. He's a good friend of mine off the pitch and I love playing with Michael Owen. He's a world-class footballer."
The Reds captain said he was surprised at Owens decision to leave over summer, but wished his friend good luck.
"I came back in the summer expecting to play another season alongside Michael Owen," Gerrard told the official site. "I think it surprised all the fans and all the players but Michael makes his own decisions."
"He's seen an opportunity that he didn't think he could turn down and I don't blame Michael for making that decision. He had dreams and ambitions to play abroad and Real Madrid come in for him so he wasn't going to turn his back on that and good luck to him."
But the dream move to Real has not begun well for Owen. Following a series of disappointing substitute appearances, the Kopite favourite was subbed off after only 52 minutes yesterday, as his new team fell to Deportivo.