OWEN TO SIGN ONE YEAR EXTENSION

England striker Michael Owen is set to sign a new contract with Liverpool, keeping him at the premier league club for two more years, British media reported on Saturday.

They said Owen's decision to stay at his only career club was helped by England team mate Steven Gerrard's commitment to Liverpool earlier this week after returning from the Euro 2004 tournament in Portugal.

A Liverpool spokesman said on Saturday: "Talks are ongoing and we are optimistic."

But he gave no indication of when agreement between the two parties might be reached.

After six years largely of under-achievement with Frenchman Gerard Houllier at the helm, Liverpool appointed a new manager in June in Spaniard Rafael Benitez, who steered Valencia to a Primera Liga and UEFA Cup double last season.

The Daily Mail said Owen, who has one year left on his present contract, is set to sign a 12-month extension which would lift his weekly wage to 80,000 pounds ($146,300).

Benitez has said he wanted to keep both Owen and Gerrard, key members of the England team that reached the Euro 2004 quarter-finals in Portugal.

Owen, who has 60 caps and scored his 26th England goal in the Euro last-eight defeat on penalties by Portugal, has hit 118 goals in 216 premier league appearances.

Anfield Online