He said: "I was in a no win situation when a journalist from France asked me about rumours over there linking me with Monaco.
"In France if you say you are not interested in a French club then you are perceived as big headed or arrogant. In France you can't insult people like that.
"I said that it was not something I was considering at the moment. I actually read the article and it was okay but a bit of it was taken out and twisted.
"I told the journalist that whatever he wrote, I could not win. I would either be hammered in France or hammered in England.
"I love Liverpool, I love the players and I love the fans. I am happy in the atmosphere I am working in and I am staying.
"If we hadn't lost at Birmingham then I don't think this story would have come out. But when we did it was an ideal time for the press."