ESPN reported that sources close to Gerrard claim that he will turn down MK Dons' managerial offer, with a view to continuing his playing career.
Gerrard is now a free agent having left MLS club LA Galaxy, and Hebei China Fortune are expected to have offered him a wage packet of over £200k a week. Other clubs are said to be interested, although it remains to be seen whether a return to Liverpool is still on the cards.
A role at Liverpool is more likely to be as a coach. Jurgen Klopp has cleared the way for Gerrard to start his coaching career at the club with the possibility that he will have his coaching badges fast-tracked by the FA.
But the 36-year-old is reportedly keen to carry on playing, although a move to Brendan Rodgers' Celtic is understood to be unlikely.