The Spanish teenager has been part of the set-up at Anfield since 2009 and has forced his way into the first-team picture under Brendan Rodgers.
Liverpool are understandably keen to see him prolong an agreement which is due to expire at the end of the season, and the highly-rated playmaker says he is close to putting pen to paper.
"The fans can relax. Everything's fine. I hope to sign the contract as soon as possible," he said in the Liverpool Echo. "We have been talking about a contract since the start of the season. We're nearly there - we'll sign soon.
"I'm happy here, very comfortable. This is the ideal club for me in every sense. This is like a dream for me.
"Brendan Rodgers is a coach that if you prove to him that you can perform, if you work hard, he has no problem in putting young players in the team. I have started three times and things are going well."
The USA will wear their blue away jersey against Jamaica in their World Cup qualifier on Friday night.
Support the USA national team with an official 2013 Centennial soccer jersey from Nike. Its Official.
The hoop soccer jersey is classic and cool. The USA hooped jersey is perfect for every fan. Get in the Gear.
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Barcelona will wear this new home soccer jersey next season. They also have a new away jersey. Get them both.