The Premier League's all-time top goalscorer does not believe that the right-back should be allowed to leave on a free transfer in the summer.
Alexander-Arnold is one of the best full-backs in the world and is wanted by Real Madrid.
"It would be crazy if the local boy was to leave Liverpool though, with his future still very much uncertain," he stated to Betfair.
"The problem is, so long as he hasn’t signed his new contract, we’ll keep talking about the links with Real Madrid or elsewhere.
"We’re all amazed Liverpool have let it run down this far in terms of how long he has left on his contract, and bearing in mind in January, you can go and speak to other clubs, It’s a risky situation.
"It’s one we’ll continue to talk about until it’s resolved, one way or the other, but it must be a priority for Liverpool to get him tied down."