The question of whether or not to extend him is not about his skillset because overall he is a good defender that can help the squad challenge for the titles. Either as a starter or a sub. It is more about his injury record and the wages he wants. Because giving him a new 5-year contract at Kounde's wages is a very stupid decision.
There has not been a season when Araujo was injury free. He misses at least a month or two almost every autumn. He just got back from a 6-month or so injury and the club wants to give a new contract??? I mean what is the rush? Liverpool has three main players out of contract in 6 month and it seems like they are not in a hurry and act calmly and according to the plan.
Right now the news coming from club give an impression that the board and the sporting people are being pressured either by the fans or by Araujo's entourage to act on Araujo's situation and his contract. These decisions should not be made in a hurry. There is some serious money involved which will inevitably affect the squad planning in the future.
Martines is injured.. There is no point in letting Araujo go in this case. And because Araujo still has 1.5 years left on his contract, there should be no rush to act. If Juventus want him so bad and are willing to offer 90 mil for the inconvenience of letting him go in January, then yeah. It makes sense to sell him. If they are not willing to renumerate close to that number, then let them come back in the summer to talk again.