"I have been talking to Daniel and he is ready, focused and really happy here. I was on the flight to Marseille and I was thinking about we need to offer him a new contract. I was surprised when we landed and read some comments in the press," said the Reds boss.
"I spoke to him and he said, 'no problem, I am really happy here'.
"I am really pleased with him and I have a lot of confidence in him. He knows that we are playing well, that Carra and Skrtel are playing well and that maybe he needs to wait. The understanding between Carra and Skrtel has been good.
"I said that Daniel is one of the best centre-backs we have when he is fit and if he is fit it will be difficult for me. He needs games. He is a very good offensive centre-back when we are playing at Anfield.
"Clearly we missed Daniel Agger last season. He is a centre-back but good on the ball and a threat for the other team too."