Owen's current representative Tony Stephens, who is currently on six months gardening leave, is said to be keen to arrange a transfer abroad before their contract expires in July, thus giving them a share of any transfer fee.
But Gerard Houllier has revealed that talks will begin in the next couple of weeks to hammer out a new deal to keep Owen at Anfield.
"I would think that talks over a new contract will begin at the end of the month, when Michael's representative is back in the country," said the Liverpool boss.
"It is my opinion, as I expressed at our annual general meeting on Monday, that Michael will stay."
