Jamie Carragher has been told by Brendan Rodgers he does have a future at Liverpool beyond this season and will be left to decide whether to continue playing or join the staff.

Carragher will captain a young and largely inexperienced Liverpool team when they open their Europa League group campaign against Young Boys on Thursday. Now in the final year of his contract, the 34-year-old defender has been restricted to starting matches only in the Europa League this season and recently admitted he may call time on an illustrious career next summer.

The Liverpool manager, however, believes Carragher's retirement would be premature. Rodgers is open to the idea of the Bootle-born defender remaining at the club, most likely in a coaching capacity, but also raised the prospect of an extension to his playing career.

"I had a conversation with Jamie when I first came in and he wasn't sure about where he was at in his career," said Rodgers. "He has been a stalwart at this club and was a regular until last season. But I've been so impressed by him on and off the pitch. I think he can play on. He is one of the guys who is the soul of this club and there has to be a place for someone like him. Whether he wants to play on is up to him.

"He is one of the best technical players we have here – left foot, right, his touch and his reading of the game. OK, the legs might not be what they where six or seven years ago, but he's still got a lot to contribute. No doubt there is a role for him later on but there is no reason why he cannot play on from what I've seen over the last few months."

Martin Skrtel and Daniel Agger are among nine senior players omitted from the Europa League squad in readiness for Sunday's Premier League encounter with Manchester United. And returning Carragher to the bench for "the priority" of the league has, Rodgers admits, become an arduous task.

"He is the hardest part of my job," the manager said. "Every day of his life he comes in and gives his all. Guys like that you want to put in the team when it matters. This game matters, but all players want to play in the Premier League and not picking him is the most difficult part of my job as Liverpool manager. Seeing him work so hard and not giving him a shirt is the most difficult job I've got."

The £2.6m signing from Heerenveen, Oussama Assaidi, is expected to make his Liverpool debut at the Wankdorf Stadium, alongside the academy graduates Daniel Pacheco, Andre Wisdom and Suso.

The team not only reflects Rodgers's desire to avoid a repeat of the last European hangover, when Liverpool lost at home to Arsenal following the play-off win at Hearts, but the state of his squad following a troubled transfer window.

The Liverpool manager refused to revisit that final point – "I have what I have and I am excited about seeing the young talent," he said – but conceded to doubts over the squad's ability to compete at home and abroad this season.

Rodgers said: "I would love to be able to enter a team in every competition that has a real chance of winning, but the reality is we need to see where we go and I need to manage game-by-game. I felt the Hearts game had an impact on us on the Sunday against Arsenal and the league is the number one priority. Without dismissing the tournament, it is a good opportunity to see how good the young players are, how they mix with the more experienced players and the depth of the squad. There is no shying away from it, I'd love to do well in the competition but I need to manage it alongside other priorities."