Steven Gerrard's career statistics

Gerrard seemed set to join Chelsea but decided to stay at Anfield.

"The last couple of seasons were not good enough. I was frustrated being out of the title race by January," he told the club website.

"I think the new manager will definitely improve things. That was the main factor in me deciding to stay."

Gerrard admitted Chelsea were one of the clubs interested in his signature but said that there were others queueing up as well.

I was disappointed when Michael Owen left. He's a great friend of mine, I love playing with him Steven Gerrard

"Everyone linked me with Chelsea and assumed that was where I was going but, to be honest, there were three or four good clubs knocking on my agent's door," he added.

"It wasn't a case of definitely going to Chelsea if I did leave, it was a case of sitting down and discussing the possibility of me moving to a different club.

"Tactically, Rafael is very good. I'm starting to realise why he has been so successful at Valencia, with not too much money to spend.

"He thinks this team are playing to 60% and he thinks he can take the team up a lot more. I agree with him."

The 24-year-old also admitted he was disappointed to see striker Michael Owen leave for Real Madrid - as a friend and team-mate.

"I'll be honest, I was disappointed when Michael left. He's a great friend of mine, I love playing with him," said Gerrard.

"I know his runs inside-out and I've had a good relationship with him at Liverpool and with England for years. When I heard he was going I was shocked.

"But I do understand the situation the club were in, with Michael only having a year left on his contract."