Gerrard ready to pen new Liverpool deal

Steven Gerrard has insisted that he will "definitely" sign a new contract with Liverpool.

Steven Gerrard has insisted that he will "definitely" sign a new contract with Liverpool.

The England star and his advisors have been in preliminary discussions with the Anfield club for some time over a new deal as his current contract runs out in the summer of 2005.

Now, in a week when boss Gerard Houllier and his side have once again come under intense scrutiny after the disappointing defeat at Charlton, this is one piece of good news for the Liverpool chief.

And Houllier was quick to praise Gerrard, saying: "I am proud of his development.

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"My next challenge for him is to become a world class player. I want him to rise to another level and to become a real star, both on and off the field.

"I think he is still two or three years away from being world class. I am pleased with his attitude. I have watched Stevie develop and grow up and it looks now as if he understands the duties he has regarding his career."

Serious contract talks started a couple of weeks ago and Gerrard said: "They are progressing really well.

"I am certain everything will be sorted very soon. I do not foresee any problems at all because I am definitely going to sign a new contract.

"I always wanted to stay and that is exactly what is going to happen."

Gerrard, 23, who played his 200th game for Liverpool at The Valley, is believed to be discussing a new five-year deal that will see his wages rise to over £50,000 a week and place him behind only Michael Owen and Harry Kewell in the Anfield pay league.

That means he will be on around £2.6m a year and if he stays at the club for the full five-year term, it will cost Liverpool £13m.

The next stage for Houllier and Liverpool, however, will be much harder. They have also been having preliminary talks with Owen's advisors and soon must start those in earnest.

Owen, too, has until the summer of 2005 on his current deal, and the fear at Anfield is that any new talks could be strung out over several months as the club and country's leading striker considers his options.