The full-back's contract has just under 12 months left to run and, after impressing throughout this season, the 21-year-old is to be offered a contract extension
The Reds boss is gushing in his praise for the homegrown 21-year-old, who has caught the eye during his 14 Premier League appearances this season.
Flanagan's display in the 3-0 win at Manchester United last Sunday has prompted Rodgers to draw comparisons with Nicol, the former defender who won a host of silverware during his 13-year Liverpool career.
"He has been outstanding," the Northern Irishman said ahead of Saturday's clash with Cardiff City.
"He reminded me of Steve Nicol against Manchester United on Sunday - a right-footed player on the left side, steady, aggressive, no fear. He's been a revelation, and particularly in the big games.
"Jon will be given a new contract - no question.
"Come the summer he's got another year so he will definitely be given a new deal."
Rodgers has hailed the progress Flanagan is making, as he added: "It's great when you see a young player develop like that.
"You can see the confidence he has now. He has made himself an important member of the squad.
"He's only very young, but his performance levels are so mature."