Houllier, speaking to the club's official website, said: "After Chris Kirkland and Jamie Carragher signed new contracts, I think Stevie signing a new deal is exciting for the supporters. It shows the players at the club share our vision for the future. They know that we are improving and it's a very good piece of news for the fans and for everyone who loves the club, including the players.
"Stevie is the captain now and he wants to stay and win trophies at Anfield. In four years, Stevie has turned from an Academy player into an international regular for England. His development is not finished because I know the boy is still keen to improve and progress in many areas. Not only does he enjoy playing and enjoy training but he likes to practice all the time to become a better player. That's a very good thing when a player of his ability is determined to keep pushing himself to improve. He's doing his job in a very committed way."
How much of a relief is this news?