Goal exclusively revealed on July 10 that the Gunners were preparing to make a £35 million bid for the 26-year-old, and Liverpool managing director Ian Ayre later confirmed that Arsenal's approach had been rejected.
|6/4||Luis Suarez is 6/4 with William Hill to join Arsenal
"There has been lots of speculation about Luis moving to another club but he is very much a Liverpool player," said the Liverpool boss.
"We had an offer that was nowhere near what we value him at. Of course, he wants to work and play at the top level.
"But unless something drastic happens, he will be staying here. He has got three years left on his contract.
"He is a wonderful player, and still very much a Liverpool player. No matter who the player is, nobody is bigger than Liverpool Football Club.
"But Luis is a very important member of this squad and I am looking forward to working with him again this season."
Suarez scored 23 goals in the Premier League last season, second only to Manchester United's Robin van Persie, and was included in the PFA Team of the Year.