Steven Gerrard's new two-year contract extension at Liverpool has delivered him a massive pay-rise.

The Daily Mail says the 28-year-old had two years to run on his £100,000 a week Liverpool deal but has agreed improved terms to stay at the club until 2013.

He has surpassed Fernando Torres as the top owner at the club and will pick up about £125,000 a week in a deal that will be worth close to £26million.

Real Madrid are thought to have recently looked into the possibility of signing Gerrard in the summer only to conclude that the England midfielder never wanted to leave Anfield.

Gerrard said recently: "I'm really happy at the club at the moment, in fact I have never been happier at any time throughout my career and I would happily sign for life.

"I am playing in a top team, I am playing with world-class players and I believe that with this manager, going forward, we can be successful."