The 23-year-old joined Liverpool in 2011 and has made just 12 first-team appearances during his time at the club.
Uruguay international Coates suffered a knee injury during a friendly against Japan in August 2013 and initial reports suggested he would miss the entire season.
However, the defender continues to recover after joining the Uruguayan side on loan in the January transfer window and despite only earning 13 international caps since his debut in 2011 Coates revealed he still holds hopes of making Uruguay's World Cup squad.
"I hope to be in Brazil," he told El Observador. "The manager [Oscar Tabarez] has talked to everyone who has been involved, so while the list is not announced, I have faith."
After making an early comeback from the knee injury which kept him out of the first half of the season, Coates is eager to discuss his future with Liverpool.
"I have been in contact with them, the situation is complicated but I want the best for Luis [Suarez] and for the team," he said.
When asked whether he feels ready for Premier League football, Coates remained coy, saying: "You have to ask the manager about this.
"Some players may not succeed in one place then do well in another one. We have to wait for the right moment and make the most of them."
Coates revealed he did watch Liverpool's 3-3 draw with Crystal Palace on Monday which saw their Premier League hopes all-but ended and admits even while on loan, throwing away their lead at the top of the Premier League title is hard to take.
"You get a bitter taste when there are so few games remaining, you are in a top position, losing points, it's a competitive league," concluded Coates