The 32-year-old, who is believed to currently earn £130k every week, has made over 628 appearances for the Reds since his debut in 1998.
Gerrard said: "The talks have started but I think it is something that will get sorted at the end of the season.
"It's not a stand-off or anything like that. They want me to extend, I want to extend. How long for I'm not too sure yet. That's under discussion."
The England international has previously claimed that he will end his career at Anfield.