Houllier said: "We will sit down with his agent in due time. Michael knows our intentions, what we think about him, and we will do everything in our power to keep him. I am very, very optimistic he will stay.
"I don't think being out of the Champions League will come into it. It is disappointing not just for him but for everyone at the club, but we will survive. It's not the end of the world and I don't think it will make any difference to any contract talks.
"When you lose a big game like we did at Chelsea, then it is always a crisis at a club like ours. But we have progressed over the past four seasons and won trophies. I just hope that in four years time I will get criticised as much for winning the same number of trophies - and probably the Premiership as well."