The versatile homegrown star is out of contract this summer but is part of the club’s plans.
The young defender has not featured for the first-team this season due to a serious knee injury, which has weakened the Merseyside outfit at right wing-back.
The 22-year-old starred in his breakthrough campaign last season, starting 23 Premier League games for Brendan Rodgers’ men.
Flanagan’s current contract expires at the end of the season; he is a product of the Liverpool youth system and has been part of the first-team squad for a number of campaigns.
Despite his injury concerns, the Reds are reportedly planning a future with Flanagan in it and will look to extend his deal at the end of 2014-15.
The Merseyside outfit have had some issues at right wing-back, with Jordon Ibe looking like the first choice for Rodgers’ men.
Glen Johnson is out of favour, while the likes of Raheem Sterling, Adam Lallana and Lazar Markovic have also been forced to play out of position at different rimes during the season.
As such, getting Flanagan fit and firing could be as good as a new signing for the Reds next term.