Raheem Sterling will sign a new contract "very imminently," according to Brendan Rodgers.
The 20-year-old's representatives, Impact Sports Management, have been in negotiations with Reds chief executive Ian Ayre for more than three months to extend a deal that currently runs until 2017.
Rodgers told a news conference: "It's something the club are speaking to his representatives about. I would think that would be concluded very imminently.
"The player's very happy. He's working. It's nothing to do with Raheem. He wants to be here. So we hope we'll get the solution on that very soon."
Reports in December suggested that he had rejected an offer of £70,000 a week, which is believed to be more than double his current salary. Recent reports claim that his new deal will be worth closer to £100,000 a week.
Real Madrid and Bayern Munich have been linked with Sterling.