Mark Lawrenson believes Liverpool are "doing the right thing" in handling Glen Johnson's contract situation and has urged the Reds to wait till the end of the season in handing a new deal.
The England international will have one year left on his deal at Anfield at the end of the season. The 29-year-old had earlier revealed the talks over extending his stay at the Merseyside club beyond 2015 is yet to begin.
Liverpool legend Lawrenson claims the club owners Fenway Sports Group will wait till the summer in handing the former Chelsea defender a new deal.
Lawrenson insists not handing Johnson a deal in the mid-season would make him hungrier to earn a contract extension. The former Reds defender believes the current situation will benefit the club as it will make the England star work harder on improving his performance for Rodgers' side.
"Glen Johnson this week admitted he has been given no signal over any new contract with Liverpool. And I think the Reds are doing the right thing by waiting until the end of the season before addressing it," Lawrenson told the Liverpool Echo.
"The recent release of the club accounts made for very interesting reading. It appears the club are slowly wiping out their debts and clearing the decks for the rebuilding of the Main Stand and Anfield Road End."
"My perception is they are being really clever. Prudent, yes, but pragmatic with it. And, hey, it's as though Liverpool are now being run like an actual business. That's why Fenway Sports Group are going to wait and see what happens with Johnson."
"I don't have a problem with that. If you can make any employee hungrier and get a good reaction and level of performance from making them work for a new deal, then fair play. Johnson will know deep down he is playing for his future even if, as is almost certain, it will involve taking a pay cut."
"He has missed a chunk of the season. So perhaps FSG are thinking 'hold on, he's been off form and injured, so let's just wait and see what happens between now and the end of the season," Liverpool favourite concluded.