Brendan Rodgers has confirmed Liverpool have offered captain Steven Gerrard a new contract.
The 34-year-old midfielder is out of contract at Anfield at the end of the season, prompting intense speculation over his future at the club.
In November, Manchester City manager Manuel Pellegrini indicated his club were monitoring the former England captain's situation, having signed Frank Lampard on loan this season in similar circumstances following his departure from Chelsea.
But Rodgers has assured Gerrard he remains firmly in his plans and will give him until the end of the season to decide whether he wants to extend his 16-year spell on Merseyside.
"The latest is he has been offered a contract here and at this moment in time that is where it is at," Rodgers told reporters.
"In what he has done in his 16 years here, he is a man who deserves the utmost respect and time to consider that. It is a big move not just in his life but in terms of committing where his next contract is going to be.
"There are probably many things Steven would have to think about in a decision like this but it certainly won't be money. I have spoken to him often enough and at length and that won't be the case."
Rodgers dropped his captain from the starting XI that beat Stoke City 1-0 at Anfield on Saturday 29 November amid reports of a falling out between manager and captain. But Gerrard swiftly dismissed such suggestions and Rodgers insists his relationship with his skipper is healthier than ever.
"Between now and the end of the season, he deserves the opportunity to have a think of where it is at but one thing is clear, I love working with Steven Gerrard," the Reds boss said.
"He is arguably the best player who has ever played in the Premier League. I have enjoyed every minute of working with him here and I hope that continues.
"But I need to give him the opportunity to take as long as it takes in order for him to decide what he wants to do next.
"I saw some things yesterday which were unfortunate about a rift between he and I but if there were two words I would use to describe our relationship it would be 'honestly' and 'respect'."