Liverpool legend Steve Nicol says the club should hand Adam Lallana a new contract.

Lallana is out of contract at the end of the season and reports say he is set to leave on a free transfer.

“I'm not so sure," Nicol told ESPN FC when asked about Lallana's future.

“As a player you want to play but I think he seems to me he's in a stage where 'I like being at Liverpool, I enjoy being at Liverpool, it's a great place to be, I'm playing some games, I'm having fun. Do I want to leave Liverpool and go somewhere just to play, where it could be hard work and not enjoyable?'.

“So I don't think this guy's going to leave and it's good for Liverpool that he doesn't leave because he's a great squad player.

“I don't think he's going anywhere."