Owen, 24, is out of contract at the end of next season and preliminary talks about a new deal have begun.
"I firmly believe that Michael will still be here with us next season," Houllier told reporters on Friday.
"Michael loves this club having come through the system and we are all hopeful a new deal can be agreed."
Owen made his debut for Liverpool in 1997 and has scored 156 goals in 295 appearances for the club.
