Reports coming out of Spain suggest that the Liverpool playmaker is deciding to either stay at Liverpool or sign for Real Madrid.
The reports state that Gerrard and his manager Rafael Benitez are deep in talks over his next contract.
Gerrard has apparently told Benitez that Real Madrid is a "tempting opportunity".
The Champions' League-winning skipper is also reported to have said that he will not sign for any other Premiership club - ruling out Chelsea as an option.
So it looks as if Jose has lost out twice on Gerrard - and the search for a quality midfielder and two- top-class strikers continues.