The England international, 25, has put pen to paper on a five-year deal with the club that runs until the summer of 2027.
Gomez, who was reportedly interesting in Aston Villa this summer, joined from Charlton Athletic in June 2015 and has since won the Premier League, Champions League, FA Cup, Carabao Cup, UEFA Super Cup, and FIFA Club World Cup with Liverpool.
However, the player – who can operate as either a center-back or a full-back – has been unfortunate with injuries during his time on Merseyside, twice damaging his anterior cruciate ligament, as well as fracturing his leg.
As a result, Gomez has made 142 appearances in total in seven years, while last season, despite being fit, he featured in just 21 matches in all competitions for Jurgen Klopp’s side.
“It’s a special moment for me and my family,” he told Liverpool’s website. “Another one that you dream of as a kid and one I don’t take for granted.