The England international was earlier this season told by boss Brendan Rodgers he could leave in the current transfer window.
However, Downing, a £20million summer 2011 signing under the reign of Kenny Dalglish from Aston Villa, has since turned his Liverpool career around.
He told Liverpool's official website when asked if he was now performing at his highest level since joining the club: "I'd probably say so.
"The first season was patchy, I was in and out. But this year, since I came back into the side, it's been consistently quite good.
"As I said, it's probably because the team is playing quite well that it's all come together."
Downing has made 27 appearances in all competitions this season, scoring three times and he has featured in Liverpool's last successive 10 games.