Rafa Benitez has admitted that Liverpool have opened talks with Javier Mascherano about extending his contract.
The midfielder has been strongly linked with a move away from Anfield for some months, with Barcelona said to be the most likely destination.
The Reds have continually denied that the Argentina international is for sale, particularly as the reports came so soon after the club sold influential midfielder Xabi Alonso to Real Madrid in the summer.
Mascherano, who has admitted to finding it hard to settle on Merseyside in the past, appears to have turned the corner and discussions are under way.
"We were talking with him and his agent a month ago about our idea and his idea," Benitez said.
"Everyone can see he's doing really well and has come back to his best. We were really pleased to talk to him to make progress.
"We have plenty of time but we are happy with him and he is happier now too. He has two more years on his contract, we were talking before and we will sit down sooner rather than later and talk about the future.
"The last conversations that we had were very positive."