Coutinho made the move to Anfield in January 2013 and has established himself as a key part of Brendan Rodgers' squad in his first 18 months at the club.

He helped Liverpool finish second in the Premier League last season and, although his current deal does not expire until 2018, he is ready to discuss an extension.

"I'd be happy to analyze a new contract," the Brazilian said in the Sun on Sunday.

"It is very important for me to play in the Champions League but staying does not rely only on that.

"It relies on other things, like being happy."

Coutinho made a handful of appearances in the Champions League with Inter Milan but he is relishing the prospect of stepping out at Anfield on Tuesday against Ludogorets as Liverpool return to Europe's premier club competition.

"I have heard a lot about the European nights at this club," said the 22-year-old. "I can only imagine the atmosphere will be fabulous, because it seems to me that the atmosphere at Anfield is always fabulous, even for ordinary games in the afternoon.

"I am aware of Liverpool's history in the competition as well and the players are just as excited as the fans at being back in the event.

"We are confident we can make it to the next stage but we know it will be tough. Not just against Real Madrid but Ludogorets and Basel too.

"We are looking forward to getting off to a good start and we know we will have the fans behind us."

Coutinho has also tipped Raheem Sterling to go from strength to strength after carrying on his dazzling recent form with a couple of excellent displays for England last week.

"He is in a very good moment and he is in great shape," he added. "I have been hearing people talking about his performance for England the other night and I cannot say I am surprised because we train together every day.

"I know his potential and I know the pace he has. I do not have the speed to catch him."

Speaking about the success of last season, Coutinho continued: "It was a good season for the whole team, not just the two of us.

"I believe I took the next step, which was good for me, but it was just as pleasing that the team as a whole was capable of doing what the manager was asking. I think Liverpool as a club is taking the next step and it is great to be a part of it."