This weekend's opponents Arsenal failed with a massive £40,000,001 offer for Suarez in the summer.
"I understand why Arsenal would want to buy a player of Luis' quality because he is one of the leading strikers in the world but it was something that was never going to happen," said the Reds boss.
"For us and the institution we are we certainly weren't going to sell to a rival, a competitor, and that was something which was very strong from the off.
"There was all sorts of gossip on the summer but we were very firm in our leadership, from the top right the way through, that this was something we didn't want to do.
"You have to give credit to the players themselves. It certainly wasn't an easy situation.
"It was also a great credit to the owners and the leadership of the club that they stood by what my thoughts were as a manager and they backed it all the way.
"This was the place for Luis to showcase his talents. He is a player, like some of our other players, who deserves to be playing at the highest level of European football but we believe he can do that at Liverpool.
"There is no greater stage for him than a club like this and once the window was shut, like we thought, there was never going to be an issue.
"It is a player we were really happy to keep who is surrounded by other good players as well.
"He is one of the hardest-working players that is in love with football I've seen and once the window shut he has been brilliant.
"He is maturing as a man. He is 26, father of two now, and I think the maturity in his game and personal life is there to see.
"Everyone talks about his goals and work-rate but I've seen an improvement in his football ability and his maturity.
"That really bodes well for us. We won't get carried away, we have to keep our concentration and continue to work very hard."
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