The blue and ivory in your current rug already give you a useful starting palette. If you're replacing it, I'd look for a muted denim or indigo pattern with warm sand or ivory, rather than a mostly white rug or a very cool gray-blue. That should connect the light sectional to the stone fireplace and dark ottoman without making the middle of the room feel washed out. Before ordering, bring home a few swatches and check them beside the sofa and fireplace in daylight and at night; rug photos can shift the blue and tan quite a bit. Also tape out the candidate size so the sectional's front legs and the chair can both sit comfortably on it, with a visible border beyond the ottoman. Would you prefer a quieter pattern than the current rug, and what size and budget are you considering?

It depends what you're going for. Are you just tired of the same rug? Do you want a new style to the room?
Because it seems most of your room and decor leans traditional and transitional. If I suggest a more contemporary rug, that might not be your speed. While you can Find these colors in rugs, they tend to be in traditional/transitional leaning rugs. There are other styles of rugs that use these colors too.

If you're not afraid of dark colors, a beautiful dark navy and ivory rug would be beautiful too. You can supplement the white ivory sofa with dark navy pillows and an accent pillow with navy trimming.

I really like the Safavieh wool rug below.

https://ruggable.com/products/santiago-blue-cream-rug?utm_source=google_shopping&utm_medium=cpc&utm_medium=cpc&utm_source=google&utm_campaign=us_conversion_na_standardshopping_brand_troas_cbo:yes_na_zombie&utm_content=evg&gad_source=1&gad_campaignid=23334834437&gbraid=0aaaaadma8zkhlrvti7942i-bbiwsueyey&gclid=eaiaiqobchmi-n2ar6cilwmvmkt_ab0wqjpkeaqyaiabegicc_d_bwe&system=rug-cvr

Yes I am looking for a more subdued look but still with some color. I do think I will stay with the more traditional look as my house is only 1300 sq. ft. therefore I have opted for a more "cottage look". I really appreciate all the great ideas!

I must add that I want a nice fairly plush rug- but $400 or less. I've gone the route of expensive rugs only to have coffee spilled on my wool rug and completely ruined it.

That helps narrow it down. With a $400 ceiling and spills in mind, I'd look for a muted blue-and-sand traditional pattern with some variation in the background, so a small spot is less conspicuous than it would be on a solid ivory rug. For softness without a very deep pile that's harder to clean, compare a medium-pile rug over a cushioned pad. Check each candidate's actual fiber and cleaning instructions rather than assuming all 'washable' or 'performance' rugs feel plush. What size did you measure for the sectional and chair? That will determine which options really fit the budget.

The rug you currently have is already subdued other than the blue in the center. You can go for something like this but still looks similar to what you had.

IMO because the space is so small selecting a rug that has no border is essential. It will make the space appear larger.

Make sure your rug is properly positioned. We cannot tell from your one minimal photo which way the rug should be placed.

I really like the first two that @BeverlyFLADeziner posted.