Tentative talks with the 24-year-old have already begun at Anfield, and Houllier continues to believe that Owen's sublime talents will again be showcased in the Red of Liverpool next season.
Houllier said: "We have had preliminary talks and they went well. My position is the same as it's been all season. I think Michael will stay with us.
"Whether I am proved to be right or wrong only time will tell."