"I have over three years left on my contract and I have not wasted a split second on the idea of leaving Liverpool at the end of the season," he said.
"As far as I know the club want me to stay on. They told me I will be given all the time I need to get fully fit again."
It is common knowledge that Babbel has been frustrated with Gerard Houllier's decision to ease him gently back into action after recovering from Guillain Barre Syndrome, and he has had to spend most of the season in the reserves.
"It is true I'm currently playing on the reserve team but that is only because I'm lacking match practice and this is the best way to get it back.
"My relationship with our coach is absolutely in order."