The 35-year-old will leave Liverpool this summer to join Bayer Leverkusen.
Hyypia said: “I’d love to come back as a coach and it was great to hear the manager would like me to return.
“I’d have loved to win the league title here but the reason I’m leaving is I think I’m young enough to play and my chances would be limited.”
Hyypia has played more than 400 games for the Reds.
