The Scottish star is one of the key performers for Jurgen Klopp's men.
He has already won the Champions League and is on the verge of his first Premier League title.
"My ideal situation just now is to retire at Liverpool," the left-back told BT Sport.
"It's going to be quite hard but I would love to be able to finish my career here. If I can keep my standards as high up to a James Milner type of age, I would be quite happy with that and call it a day then.
"You're a long time retired, as they say, and I want to play as long as I can. If that's finishing up in Scotland or at one point going up to Scotland, I'd be open to it. But my ideal situation is probably finishing and hopefully a couple more trophies at Liverpool."