We have measured dielectric constant (ε) as well as magnetic susceptibility (χ) of GdMn2O5 in order to elucidate magnetoelectric phase transitions slightly above and below Néel temperature (TN). Our measurements clearly show that above TN there are short range magnetic correlations arising from geometrically frustrated Mn moments, which fluctuate with respect to field and frequency. These well-defined magnetoelectric phase transitions, together with other transitions below TN, have been observed and discussed in the light of the χ. Magnetoelectric phase diagram is drawn which corresponds well to polarization flip phenomenon as induced by 90° rotation of Gd moments in low temperature phase.