The 21-year-old full-back – a product of the Anfield academy system – has entered the final 12 months of his current deal.
He is, however, considered to be an important part of Brendan Rodgers’ plans, with his versatility marking him out as a useful asset.
Flanagan, who made his senior international debut for England in a pre-World Cup friendly against Ecuador in June, is delighted to have been offered the opportunity to extend his stay on Merseyside and says he will have no hesitation in putting pen to paper once everything is agreed.
He told the Liverpool Echo: “There have been some talks and I should be signing a new contract soon.
“It would be reward for all the hard work I’ve put in. It would be great for me and great for my family as well.
“All I’ve ever wanted is to play for Liverpool and I want to stay here for as long as I possibly can.”
Flanagan is currently being forced to watch on from the sidelines, though, with a knee problem keeping him out of contention.
In his absence, Liverpool have moved to bolster their defensive options, with Javier Manquillo and Alberto Moreno joining the ranks, but Flanagan acknowledges that competition for places is to be expected at a club competing on Premier League and UEFA Champions League stages.
He added: “A massive club like Liverpool are always going to sign top players.
“Moreno and Manquillo play in my position but that will just make me work harder. Having good players around you pushes you on.
“Hopefully I’ll get back in the team. Things went well for me last season and I want to build on that.”