"I think I am the happiest guy today," he told the official site.
"It was always my dream to stay as long as possible at one club that I love, and that is Liverpool.
"After all that happened in the beginning, in the past two seasons I think I've done better than in the first season.
"The club have rewarded me, they believed in me and also the fans. “Next season, we will again try to reach as many points as possible, but firstly to finish this season well and qualify for the Champions League."