Forest boss Joe Kinnear has made no secret at his attempt to bring Gerrard to the City Ground permanently and has offered an improved contract to the original 'take it or leave it offer'.
Gerrard, who was on around £14,000-a-week at Goodison, would have to take a huge pay-cut to join either Nottingham Forest or Leeds with Sheffield United still keeping tabs on the situation.
Leeds are also in talks with Noel Whelan over a possible return to Elland Road. Whelan is currently keeping fit over the summer by training with Sheffield United after being released by Derby County towards the end of last season.
The former Coventry striker could have joined Forest early this year but Paul Hart decided against the move despite him still living in the Nottinghamshire area.
Meanwhile, Forest manager Joe Kinnear has given a deadline to Scottish midfielder Gareth Williams over his new contract.
The 22-year-old has until Tuesday 15 June to decide whether to accept the new deal or move elsewhere.
NOTTINGHAM FOREST RUMOUR MILL:
Marlon Harewood on a season-long loan from West Ham United - 7/10 chance
Stern John on a season-long loan from Birmingham City - 6/10 chance
Matthew Spring signing on a bosman-free transfer from Luton Town - 8/10 chance