Owen has been the subject of transfer speculation for weeks. At the moment he is fifth-choice striker at Madrid and fears another season on the substitutes bench will hold back his international career.

Gerrard and England squad colleague Jamie Carragher have both let it be known they would favour Owen’s return.

The Anfield skipper said: “It goes without saying I would love Michael Owen back here and I think everyone at the club would love him back.

“Obviously it’s up to Real Madrid. He’s their player and they will decide if he can go, but when I see Michael in the England squad this week I won’t even have to ask him where he’d like to be in a few weeks.”

Gerrard, talking to the Liverpool Echo, added: “I am waking up every morning looking in the papers and hoping to read he is on his way here. Could you imagine him coming back to Anfield and scoring against us for another Premiership club? It would be a nightmare.

“Whoever signs him guarantees themselves 20 goals and in my opinion he’d be the best striker in the league.”

Liverpool boss Rafael Benitez admitted at the weekend that he could not dismiss speculation of Owen’s return but has consistently made the point that he needs a new centre-half and an right winger to bolster his squad before he will look seriously at the Owen option.

It is believed that striker Milan Baros is on the verge of moving to Aston Villa for a fee of around £7m (€10.2m) and that money would allow Benitez to sign the two players he needs. Liverpool would then have to wait for Champions League revenue to fund a deal for Owen.

However it has been suggested that he could return to Anfield on a year loan with a view to a fee being paid next summer.