Steven Gerrard has committed his future to Liverpool by signing a two-year contract to keep him at Anfield until 2015.
The Liverpool captain, who had 12 months remaining on his previous deal, will now stay at his only club until after his 35th birthday.
And Liverpool have already raised the prospect of a further contract to ensure Gerrard finishes his career at Anfield.
"I think everyone knows what it means to me,” Gerrard told the club’s official website. “I've been here that long and so to extend, it's a big day for me and I'm really happy for myself and my family. It's great news.
"It lets me know the club thinks an awful lot of me and want me here. I'm glad it's all done and it's happened at the right time before the season, so I can just focus on playing as well as I can."
The new deal means Gerrard, who joined the club’s academy at the age of nine, will complete a quarter of a century at Anfield.
The 33-year-old signed his first professional contract in 1997 and debuted the following year.
He has gone on to score 159 goals in 630 games for Liverpool, meaning he is the seventh-highest scorer in their history and stands eighth in the list of all-time appearance makers.
Gerrard is set to complete a decade as Liverpool skipper in October and has won the Champions League, the UEFA Cup, the FA Cup twice and the League Cup three times during his time at the club.
Manager Brendan Rodgers had been keen to retain the services of his skipper, who has been granted a testimonial against Olympiakos on August 3, and the news was welcomed by the club.
"I'm absolutely delighted, as you can imagine," Rodgers told LFC TV. "I've talked throughout the pre-season about wanting to bring other players into the group, but this was one of the - if not the - most important signings for us.
"He's an icon here at the football club - a real iconic figure for players and supporters. I think he's still got a good few years left yet. His level of performance last year was outstanding."
Managing director, Ian Ayre, added: "It's fantastic for everyone - the club, Steven and the fans.
"He is - and always has been - such a big part of Liverpool Football Club. Particularly in this day and age, it's rather unique to find a local player who has given his whole career to his club.
"We're pleased today to add an extension to his existing agreement and that keeps him here until the end of his career.
"We've said what we'll do in two years' time is review it again and see how happy Steven is. We seem to always be happy with him, so hopefully we'll just continue in that vein."
The news will be a boost for Liverpool fans amid uncertainty over the future of Luis Suarez, with Arsenal rumoured to have submitted a new £35 million bid for the striker.