"It's no secret Gerrard is a player Perez and technical director Jorge Valdano admire," a source inside the club announced to British tabloid The Sun.
"There is a shortlist for next season and Gerrard is the first name on it."
Having signed Xabi Alonso from the Premier League side last summer for €30 million, los Blancos are looking to spend around the same amount on the 29-year-old.
Liverpool coach Rafael Benitez is already under heavy fire after an awful start to the season and he would be loath to lose his star midfielder.
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