Liverpool boss Brendan Rodgers has confirmed that discussions with Raheem Sterling over a new contract are already underway.
The 19-year-old has established himself as an important member of the Reds squad this year, and was linked with a move to Real Madrid earlier this week.
However, Rodgers dismissed the reports and revealed that plans are afoot to offer the England international fresh terms at Anfield.
He told the Liverpool Echo: "There are ongoing talks between the owners and myself regarding contracts for a number of players.
"With Raheem we are relaxed where we're at with him. The club are dealing with that and I'm sure we'll get the solution.
"He is very happy here – that's the key thing. In time I'm sure that will be sorted."
Liverpool host their fierce local rivals Everton this weekend.
