The rug on the left with the black border.

I prefer the one without the border, but to be really honest... I think you could do better. Think it's too informal for the style of your furniture. But if you're set on one of those two, I'd go for the one without the border.

Carolin I am not a fan of the furniture, but unfortunately I have to work with it. The rug without the border is more comfortable on the feet and neutral.

I would put a pale blue rug to add some color and bring out the blue in the painting,

Furniture is what you need to work with , right? So you must consider what it is. Furniture is heavy, large and solid along with fireplace and built ins being weighty and substantial.
So .... Carpet must also reflect this style. What you are showing are carpets that are light and summery ... Like something used in a sun room with wicker furniture.
The carpet you need .... should have an indoor feel.
This is the PERFECT place to add some color and pattern to this space. I would select a red toned Persian carpet ( or fake Persian) and please get one larger, if you want space to look big. Or use same size carpet, but put front feet of sofa on carpet and back feet off . Need a bit more breathing room for the furniture.
Reddish tones will make this room smile.

Agree that you need more room for the furniture, I would pull it back. I think a rug in the bluish gray from the picture would be a good option if a possibility. As to the coffee table, given that there isn't much room, perhaps a glass table top with white wood to work with your cabinet.

You need a colorful rug that has a more traditional feel to match your furniture.

I'd just go for the rug without the border then if I were you :-) It's fine if you like to give the room a less formal feel.
Small accent tables: look for something that feels quite light, take into consideration the height of the armrests and make sure the table isn't too much lower or taller:

I want to thank you all for your comments. I have to work with what I have due to budget. If I could I would replace the couch, chair, and rug, but it is what it is.

My opinion, the rug without the border looks great !

Here is a one switch solution.... remove the ottoman to the chair and replace it with an ottoman that can be used as a table for both. I like the rug that's there. You might try putting a little flair into the room by either offsetting the rug or couch by a quarter turn. Less furniture and symmetry will make the area seem a little roomier.

I like the ottoman idea. I work at Pier One is their an ottoman you would suggest from there. Great employee discount. I also like off setting the rug. I can try that. I have a hallway I have to consider. Thanks.

Thank you. I will purchase it ( with discount) and see what it looks like.

Your room is pretty with a cool neutral look. Both rugs appear "yellow"within the whole scheme of the room. I like the idea of a solid flat woven rug with the trim - just choose a very neutral tone such as a very light taupe.

The rug on the right, if you only have these two choices. Also, I'd move the large artwork from above the fireplace to where the smaller artwork is above the cabinet. The one above the cabinet is too small, and your fireplace stone is nice enough without any artwork on it.

The one without the border looks better, but I think it is too large only the front legs of the furniture should be on the rug. It looks like you don't have room to move the sofa back so I'd look for a smaller rug

A smaller rug? The rug is an 8x10. What do u think a 6x9?

Moves picture from mantel to wall and bought a new ottoman. What do u think?

Yes, the rug should be 6' x 9'. Still too much sofa on rug. 6' x 9' is hard to find but I did find one at Pier One last winter and just saw some in there the other day. I would try it. Picture looks great and I really like the ootman

Looks much more sophisticated yet cozy!