The striker has just under two years left on his current contract and is due to sit down with the club to discuss a new deal.
There was talk that Owen was unhappy with Liverpool's failure to qualify for the Champions League this year, and rumours of a move, possibly abroad.
"I am sure we are going to reach an agreement," said Houllier. "I mean, this sort of thing was written two or three years ago. I know my players."
Will Owen stay at Liverpool?