The Brazilian had three years left on his contract but has renewed his deal to 2022.
The 24-year-old has been at Anfield since January 2013 and quickly established himself as a key player.
Liverpool fans react as Philippe Coutinho returns to starting line-up
Wed, January 18, 2017
Click through the gallery for the best reactions to Liverpool's line-up against Plymouth
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Click through the gallery for the best reactions to Liverpool's line-up against Plymouth
He's made 163 appearances, scoring 34 goals.
Coutinho said: “I would like to thank everybody at the club, first of all.
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Philippe Coutinho has committed his future to Liverpool
“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.”
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