Kenny Dalglish today explained why he believes Jay Spearing's contract extension is the perfect reward for the midfielder's excellent form.

Having started Liverpool's last six Barclays Premier League matches, the 22-year-old put pen to paper on a new deal at Melwood on Friday.

And Dalglish admits he's been delighted with Spearing's progression since he returned to the Anfield helm in Janaury.

The boss told reporters at Melwood: "It is great news for us, great for wee Jay and for everybody concerned. It's just reward for the performances he's put in and he thoroughly deserves what he's got.

"He has started the last few games for us, so that is progress in itself as he was never one of the starting XI unless there were injuries or suspensions. But he's in there now and he's in there on merit.

"I think that's progress.

"He's certainly reached a higher level than he has done before. We're delighted with what he's done and he's a great asset for us to have."

Click on the play button below to watch Kenny's press conference

Journalists asked Dalglish whether Spearing's contract extension was indicative of how the players have performed in recent weeks.

"I have just noticed the players being really enthusiastic in training and in the way they've worked, and they've had their reward for it on the pitch," he replied.

"I suppose it is an extension of the work that has been put in by Jay - not only to get a game, but also an extension to his contract.

"We've not been disappointed with any single player's attitude since we came in.

"You saw last night, a few of the lads played for the reserves and they had a great attitude towards the game, we're fully committed and got a great deal out of it as well. That will do us no harm whatsoever, and neither will it do the players any harm either."

It's been a long road from the Academy to Liverpool's first team for Spearing, and one reporter asked the boss whether the Reds were now benefitting from the Wirral-born youngster's belief he could make the grade at Anfield.

Dalglish replied: "Different people have different ideals, and different people make judgement calls at different times. Maybe we're just fortunate that we have been patient.

"Jay has earned the games he is getting and the way he has played in those games has been fantastic. He and Lucas have done tremendously well in the centre of midfield.

"If anybody wants to look at Jay as a local boy made good, then he is a good example to follow.

"Jay's probably looked at Carra and thought the same thing, and Steven will also come into the equation.

"As we've said before, local players are important but their ability is more important. The people I have mentioned there qualify on both counts."

He added: "A belief in their own ability helps them (younger players) as well. If they're good enough, they'll get a chance. Obviously the wee man has proved he is good enough.

"I don't know what obstacles they've put in their mind to do anything moving forward, but the only criteria here is ability. Nothing else."