Liverpool boss Jurgen Klopp has signed a new six-year deal, with the club's owners saying it would have been "irresponsible" not to offer him a long-term contract.
Klopp joined Liverpool in October, initially agreeing a £15m deal to 2018 that has now been extended until 2022.
"His leadership will be critical to everything we hope to achieve," said Liverpool's owners.
Klopp took Liverpool to the League Cup and the Europa League finals last term.
The 49-year-old German had previously guided Borussia Dortmund to two Bundesliga titles and the 2013 Champions League final.
"The ideas and plans he has for the football infrastructure excite us," added Liverpool's principal owner John Henry, chairman Tom Werner and Fenway Sports Group president Mike Gordon.
"We believe it benefits the organisation to have Jurgen committed to Liverpool for a sustained period, to make sure he is here to oversee this development.
"When you have an individual of Jurgen's quality in the building it makes perfect sense to secure that person for the long term.
"To not do so would be irresponsible."
Klopp replaced Brendan Rodgers with Liverpool 10th in the Premier League table.
They finished eighth and were beaten on penalties by Manchester City in the League Cup final before losing 3-1 to Sevilla in the Europa League final in Basel.
"We are very much at the beginning of our journey," said Klopp.
"I am the first to recognise that with this great commitment comes a great responsibility.
"There is much to do and much to achieve and we look to do this by being the most completely together group anywhere in the world."
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