The Egyptian, who arrived at Anfield last summer from Roma, has been rewarded for a remarkable debut season on Merseyside in which he scored 44 goals in 52 appearances.
Salah was instrumental in Liverpool's run to the Champions League final under Jürgen Klopp and his prolific scoring attracted the attention of European football's elite.
The 26-year-old has now, however, reaffirmed his happiness at Liverpool by agreeing new terms which will run up until the summer of 2023.
Klopp hailed Salah’s commitment as evidence that “world-class talent” has a place at Anfield.
“I think this news can be seen for what it is; rewarding a person who performed and contributed greatly for the team and the club last season,” the Liverpool manager told the club’s official website.
“It demonstrates two things very clearly also – his belief in Liverpool and our belief in him. We want world-class talent to see they have a home at Anfield where they can fulfil all their professional dreams and ambitions – we are working hard together to achieve this.
“When someone like Mo Salah commits and says this place is my home now, it speaks very loudly I think. Equally, our commitment to him says we see his value and want him to grow even more and get even better within our environment.”
The absence of a release clause in Salah's new contract is an added boon for Liverpool. Any potential suitor would most likely have to pay a hugely expensive fee for Egyptian, as Barcelona did when parting with £142m for Philippe Coutinho in January.
Salah's deal follows Roberto Firmino’s commitment to a new, five-year contract back in April. Sadio Mané – the third member of Klopp’s dynamic attacking trio – could be the next of Liverpool’s renewals.
On Salah, Klopp added: “The key thing to remember is the best thing about Mo is that he never sees himself as being more important than the team or anyone else within it.
“He recognises his teammates and this club helped him achieve individual success last season. He sees the individual awards come because he is part of something bigger that is special.
“Mo reflects where we are as a team, I think. Last season was special with many special moments – but we want more.
“We want to be more successful and achieve more together – as the supporters sang so loudly, ‘we’re never gonna stop’. This has to be the attitude individually and collectively.”
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