Liverpool had a number of injuries early in the 2004–05 season, and a foot injury suffered in a September league match against Manchester United shelved Gerrard until late November.
He returned to score in the last five minutes of a Champions League group stage match against Olympiacos to secure Liverpool's advancement to the knockout round.
He claimed that this was his most important, if not his best, goal for Liverpool to date.
However, Gerrard netted an own goal during the 2005 League Cup final on 27 February, which proved decisive in Liverpool's 3–2 loss to Chelsea after extra time at the Millennium Stadium.

During a six-minute stretch in the second half of the 2005 Champions League final against A.C. Milan, Liverpool came back from a three-goal deficit to tie the match at 3–3 after extra time, with Gerrard scoring one of the goals, a header from a John Arne Riise cross.
	
Liverpool's third goal was gained as a penalty from a foul awarded to Liverpool when Gennaro Gattuso was judged to have pulled down Gerrard in Milan's penalty box.
Xabi Alonso's penalty was saved by Dida but the rebound was scored.
Gerrard did not participate in the penalty shootout (he was the designated fifth penalty taker) which Liverpool won 3–2 as they claimed their first Champions League trophy in twenty years.
Dubbed the Miracle of Istanbul, the match is widely regarded as one of the greatest finals in the competition's history, and Gerrard was lauded as the catalyst for the second half comeback.
Gerrard was named the Man of the Match, and later received the UEFA Club Footballer of the Year award.

In regards to his contract issues with Liverpool, Gerrard told the press after the final, "How can I leave after a night like this?"
but negotiations soon stalled and on 5 July 2005, after Liverpool turned down another lucrative offer from Chelsea, Gerrard's agent Struan Marshall informed Liverpool chief executive Rick Parry that Gerrard was rejecting a club-record £100,000-a-week offer.
Parry conceded the club had lost Gerrard, saying, "Now we have to move on.
We have done our best, but he has made it clear he wants to go and I think it looks pretty final."
The next day, Gerrard signed a new four-year deal as Parry blamed the earlier breakdown of talks on miscommunication between the two sides.
Gerrard stated upon signing the contract that he would rather win one Premier League medal than win multiple titles at Chelsea as it would mean more to him.

Gerrard scored 23 goals in 53 appearances in 2005–06, and in April became the first Liverpool player since John Barnes in 1988 to be voted the PFA Player of the Year.
He scored twice in the 2006 FA Cup Final against West Ham United, including a 35-yard equalizer that sent the match into extra time, and Liverpool won their second consecutive major trophy on penalties.
The goals made him the only player to have scored in the FA Cup, League Cup, UEFA Cup and Champions League finals.
Liverpool eliminated Chelsea in the 2006–07 Champions League semi-finals on penalties, to return to their second final in three seasons, which they lost 2–1 to Milan in Athens.
Liverpool had a number of injuries early in the 2004–05 season, and a foot injury suffered in a September league match against Manchester United shelved Gerrard until late November. He returned to score in the last five minutes of a Champions League group stage match against Olympiacos to secure Liverpool's advancement to the knockout round. He claimed that this was his most important, if not his best, goal for Liverpool to date. However, Gerrard netted an own goal during the 2005 League Cup final on 27 February, which proved decisive in Liverpool's 3–2 loss to Chelsea after extra time at the Millennium Stadium.
During a six-minute stretch in the second half of the 2005 Champions League final against A.C. Milan, Liverpool came back from a three-goal deficit to tie the match at 3–3 after extra time, with Gerrard scoring one of the goals, a header from a John Arne Riise cross.	
Liverpool's third goal was gained as a penalty from a foul awarded to Liverpool when Gennaro Gattuso was judged to have pulled down Gerrard in Milan's penalty box. Xabi Alonso's penalty was saved by Dida but the rebound was scored. Gerrard did not participate in the penalty shootout (he was the designated fifth penalty taker) which Liverpool won 3–2 as they claimed their first Champions League trophy in twenty years. Dubbed the Miracle of Istanbul, the match is widely regarded as one of the greatest finals in the competition's history, and Gerrard was lauded as the catalyst for the second half comeback. Gerrard was named the Man of the Match, and later received the UEFA Club Footballer of the Year award.
In regards to his contract issues with Liverpool, Gerrard told the press after the final, "How can I leave after a night like this?" but negotiations soon stalled and on 5 July 2005, after Liverpool turned down another lucrative offer from Chelsea, Gerrard's agent Struan Marshall informed Liverpool chief executive Rick Parry that Gerrard was rejecting a club-record £100,000-a-week offer. Parry conceded the club had lost Gerrard, saying, "Now we have to move on. We have done our best, but he has made it clear he wants to go and I think it looks pretty final." The next day, Gerrard signed a new four-year deal as Parry blamed the earlier breakdown of talks on miscommunication between the two sides. Gerrard stated upon signing the contract that he would rather win one Premier League medal than win multiple titles at Chelsea as it would mean more to him.
Gerrard scored 23 goals in 53 appearances in 2005–06, and in April became the first Liverpool player since John Barnes in 1988 to be voted the PFA Player of the Year. He scored twice in the 2006 FA Cup Final against West Ham United, including a 35-yard equalizer that sent the match into extra time, and Liverpool won their second consecutive major trophy on penalties. The goals made him the only player to have scored in the FA Cup, League Cup, UEFA Cup and Champions League finals. Liverpool eliminated Chelsea in the 2006–07 Champions League semi-finals on penalties, to return to their second final in three seasons, which they lost 2–1 to Milan in Athens.
Steven Gerrard