The Brazil international had been linked as a transfer target for Barcelona recently, but Reds fans will be delighted to see an end to speculation over his future.
Coutinho joined Liverpool from Inter Milan in 2013 and has gone on to make 163 appearances for the club, scoring 34 goals.
Speaking to the club’s official website about his new deal, he said: ‘I would like to thank everybody at the club, first of all.
‘I am very happy to sign a new contract here. It is a club that I am very grateful to and this shows my happiness here. I will work much harder to repay the belief shown in me.
‘I signed this new contract to stay here for a few more years because it’s a great honour for me. It gives me great happiness because I was welcomed here with open arms by everyone at the club and the supporters right from my first day. I am very thankful to this football club for everything.’Coutinho has spent some time out injured this season, and recently made his first-team return as he insists he has been working hard to ensure he gets back to his best.