Liverpool made their first official move for Rafael Benitez's top transfer target on Monday when they lodged a 3.5 million pound bid with the Spanish giants.

Madrid are holding out for 7.5 million pounds but have hinted they will lower the price if an agreement can be reached over signing Gerrard next June.

Madrid president Florentino Perez is worried Chelsea or Arsenal might beat him in the race for the England midfielder if he becaomes available in the summer.

But Anfield officials have made it clear to Madrid that Gerrard will not feature in negotiations to bring Morientes to Merseyside in the January transfer window.

Benitez wants to add at least two players to his squad in January but has only 5 million pounds to spend.

The nine-time European Cup winners are in no hurry to sell a player with 18 months left on his contract.

But Morientes has pleaded with Madrid to let him go.

He was loaned out to Champions League finalists Monaco last season and had been expected to join Liverpool last summer when Michael Owen went to the Bernabeu but that move fell through when then coach Jose Antonio Camacho refused to let him go.

However, he is still behind Ronaldo, Raul and Owen in the pecking order.

"Madrid know they must do something about me. They must sort out the situation by being sensible," he said.

"I like Liverpool and I am pleased that a club of their stature wants me.

"I have made it clear to Madrid what my position is and they understand that they have to resolve the situation.

"I have been patient, but I have not played, and I need to be playing. If the chance comes in January I want to take it."