Liverpool captain Steven Gerrard has agreed a two-year contract extension at Anfield, keeping him at the club until at least 2013.
The 28-year-old had two years to run on his current deal but has committed to the Reds until beyond his 33rd birthday on a deal approaching £150,000 a week.
Manager Rafael Benitez told the club's official website: "Steven's new contract is fantastic news for the club.
"Steven has once again shown his commitment and it was an easy deal to agree. As soon as we offered him the option he said yes.
"There were no problems at all. He wants to stay for life.
"This deal sends out another clear message that we are moving forward as a club. To know we have a player of Steven's quality with us for many more years is a great boost for the club and the fans.
"He is clearly a player who inspires those around him and, even though he is playing very well at the moment, I still think his best years are ahead of him."
Gerrard said recently: "I'm really happy at the club at the moment, in fact I have never been happier at any time throughout my career and I would happily sign for life.
"I am playing in a top team, I am playing with world-class players and I believe that with this manager, going forward, we can be successful."
After Benitez signed his own new contract in March, the way has been clear for the Anfield boss to secure deals for a string of his top stars.
It is understood that Benitez, now with more control over his budget and transfer policy, is preparing deals for Jose Reina, Xabi Alonso, Alvaro Arbeloa, Dirk Kuyt, Daniel Agger, Fernando Torres and Jamie Carragher.
He has already tied up deals for several of his backroom staff, including assistant manager Sammy Lee, first-team coach Mauricio Pellegrino, goalkeeping coach Xavi Valero, fitness coach Paco de Miguel and chief scout Eduardo Macia.
But the jewel in the crown is Gerrard. Once again there has been speculation of a summer bid from Real Madrid, but Gerrard has frequently made it clear he has no desire to play anywhere but Anfield.
And the announcement on Friday of his new deal can only boost the feel-good atmosphere around the club as they chase Manchester United at the top of the Premier League.
Great....
let's time all the good news week by week till the end of the season! :D
Liverpool's Premier League title push was given a boost on Friday with the news that club captain Steven Gerrard has agreed a two-year extension to his contract.
The 28-year-old's current deal was due to expire in 2011 but has committed to the club until 2013, with reports suggesting that his weekly wage will increase from £110,000-a-week to £150,000.
Reacting to the news, manager Rafael Benitez, who himself recently agreed a new deal tying him to Anfield until 2014, told the club's website: ''This is fantastic news for the club. Steven has once again shown his commitment and it was an easy deal to agree.
''As soon as we offered him the option he said yes. There were no problems at all. He wants to stay for life.
''This deal sends out another clear message that we are moving forward as a club. To know we have a player of Steven's quality with us for many more years is a great boost for the club and the fans.
''He is clearly a player who inspires those around him and even though he is playing very well at the moment, I still think his best years are ahead of him.''
Liverpool are currently second in the Premier League, a point behind Manchester United and could go top on Saturday if they avoid defeat at Fulham, at least until Manchester United play Aston Villa on Sunday.
The Anfield club are chasing their first title for 19 years and if successful would extend their record of English top flight titles to 19, however if United clinch the championship this season they would equal Liverpool's current record of 18 trophies.
Speaking recently, Gerrard said: ''I'm really happy at the club at the moment, in fact I have never been happier at any time throughout my career and I would happily sign for life.
''I am playing in a top team, I am playing with world-class players and I believe that with this manager, going forward, we can be successful.''
Liverpool face Chelsea at Anfield on Wednesday in first leg of their Champions League quarter-final.
Meanwhile on Friday Gerrard pleaded not guilty to a charge of affray at Liverpool Crown Court in relation to a bar brawl last December.
The incident at the Lounge Bar nightclub in Southport occurred after Gerrard's two-goal man-of-the-match performance in a 5-1 win over Newcastle United on December 28th.
Gerrard denied involvement in the incident which resulted in 34-year-old company director Marcus McGee requiring hospital treatment for facial injuries.