Stones has been linked with a loan move away.
"I think he can develop here fighting for his place," Martinez told the Liverpool Echo. "He's earned that and I don't think he needs to go out on loan and play. Here he is learning on a daily basis from Jags and Distin, and that's exactly what he needs.
"He's not the same player from pre-season, he's already gone to a different level.
"He's got an incredible future which we're all excited about and we're looking forward to him fighting to see how quickly he can get in the team."
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