Steven Gerrard
Aldridge believes Gerrard should captain Liverpool and England. PA

Steven Gerrard signed a new contract with Liverpool on Thursday, ending speculations with his future at Anfield.

The Reds skipper has also committed to assume an ambassadorial role for the club once his playing career ends.

"It's a very proud day for myself and my family. I'm very happy," Gerrard said after signing the extension to his deal with the club. "This is the club I love and is the club I have supported since I was a young boy. I am living the dream as the captain of one of the biggest clubs in the world," he added.

The development came close on the heels of the Carling Cup semi-final first leg match between Liverpool and Manchester City where Gerrard scored the winner. He said: "It comes on the back of a fantastic team performance last night when we got the result we were looking for. Hopefully we can finish the job off in two weeks time and take all of our magnificent fans down to Wembley for a day out.

"The contract extension coming the day after has been the icing on the cake so it has been a perfect 24 hours."

He added: "I love coming to work every day and the experiences I have had since I was eight years of age and first signed for the club, I wouldn't change them for the world. To extend that and to hopefully have some more good times in a red shirt is what I want."

Gerrard also expressed confidence that the Reds were going in the right direction. "We've got a fantastic team, we've got the right owners in place and the right team behind our team, so I'm really confident we'll have more good experiences in the future."

Gerrard is also excited about the option he has been given once he stops playing: "It's really flattering for me that the club have offered me the chance to stay when I eventually hang my boots up.

"Hopefully that will be in many years to come because I want to play for as long as I can. I'll know myself when it's time to hang my boots up and then hopefully I can stay involved with the club and set the right example for youngsters coming through," he said.