Chelsea, Real Madrid keep tabs on Gerrard's Liverpool talks

Chelsea and Real Madrid are monitoring Steven Gerrard's contract talks with Liverpool.

Gerrard was handed the captain's armband by Reds boss Gerard Houllier as he closes in on signing a new £60,000-a-week deal.

However, the Daily Star says the new contract may include a get-out clause which will allow Gerrard to leave Anfield if the club fails to match his own ambitions.

It's also been suggested the England star is looking for closer to £100,000-a-week before signing his new contract.