Liverpool are to open talks with the representatives of Philippe Coutinho over a new contract, according to Sky sources.
The Brazil international only signed an improved five-year deal in 2015, but the Reds are keen to reward him for the impressive form he has shown this season.
Coutinho, who recently returned from a six-week lay-off with an ankle ligament injury, has scored six goals in 18 appearances for Liverpool so far this campaign.
The 24-year-old joined Liverpool from Inter Milan in January 2013 under the management of Brendan Rodgers and quickly established himself as a first-team regular under the Northern Irishman.
Coutinho has arguably produced the best form of his career so far since the arrival of Jurgen Klopp as Liverpool manager in October 2015, scoring 17 goals in 51 appearances under the German.
His fine form has seen him linked in the national press with a move to Barcelona, with Brazil World Cup winner Rivaldo insisting his compatriot has the talent to shine at the Nou Camp.
Coutinho is likely to feature for Liverpool in their EFL Cup semi-final second-leg against Southampton at Anfield on Wednesday, with the Reds aiming to overturn a 1-0 deficit.