Liverpool manager Brendan Rodgers has signed a new and improved contract to keep him at Anfield until 2018.
The deal has been in the offing for the last couple of months and is reward for the significant progress the club have made in two years under the Northern Irishman's leadership.
Rodgers, who had a year remaining on his existing agreement with an option for a further 12 months, guided the Reds to second in the Barclays Premier League this season from seventh 12 months ago and always said he would sign his new contract once the campaign was over.
"I am both humbled and privileged to be offered the chance to extend my stay at this great club," he told liverpoolfc.com.
"I am very happy to build on the foundations we have built over the last two years and now we move on to the next phase which I believe will be as exciting, challenging and rewarding."
Rodgers added: "I would like to place on record my thanks to the players and staff, who have been absolutely brilliant for me since the day I started at this great football club.
"I am grateful to our owners and senior management team who have supported me and who share my vision of how we can progress on the field.
"Finally, I must thank the supporters who are at the heart of everything we do here.
"I am honoured every day to lead this team and I thank the fans for their continued support as together we strive to bring success back to Liverpool Football Club."
Rodgers has impressed club owners Fenway Sports Group not only with the way he has improved the team without the need for numerous and expensive signings but with the manner in which he has handled himself during his two years in charge.
In a joint statement principal owner John Henry and chairman Tom Werner said: "We are very fortunate to have a hugely-talented individual leading our football performance and in whom we place our trust to deliver the vision we share for Liverpool Football Club.
"Brendan is at the heart of what we, as an ownership group, are trying to achieve on the pitch.
"This season has reaffirmed everyone's belief that we can bring football success to Liverpool and we are all committed to working together to achieve that.
"Players and supporters have made it clear how important Brendan is to our success and so to have him commit to us for the long term is a great boost for everyone going forward."