Alonso has been linked with Spanish sides Atletico Madrid and Barcelona.
He told eurosport.com: “I do not speak about the rumours of my return to Spain.
“I have a contract signed with the Reds and I am happy at this club.
“Now Liverpool are playing to our best level of the season. This is perfect for the beginning of the year with the next big challenges.
“To get to third place is very important for morale for us after the problems in the first months of the league. Now our objective is to consolidate the effort.”
