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?

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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.

For the quieter cottage look you described, I would compare a faded blue-and-sand all-over pattern with a small, soft-edged medallion. Look at a photo of each rug laid out in a room, not just a close-up: check which parts of the design will remain visible around your ottoman and sectional.

Before committing your $400, confirm the return shipping cost and whether a sample is available, and allow for a pad if needed. Given your experience with the coffee spill, ask the seller specifically how that rug should be spot-cleaned; “plush” and “washable” describe different things. The required rug dimensions will be the key to narrowing the suggestions.