Tsimikas joined Jurgen Klopp's side from Olympiacos in the summer of 2020 and has so far made 63 appearances for the Reds, registering 12 assists.
The 27-year-old Greece international has largely played as an understudy to Andy Robertson at left back during his time at Anfield but has made some telling contributions, including scoring the winning penalty in the 2022 FA Cup final against Chelsea.
Tsimikas, who has made two appearances this season, has also won the Carabao Cup with Liverpool and finished on the losing side in the Champions League final last year.
“I feel very glad to be here to extend my contract. I feel like all the sacrifices I did and other things, the work I put in, [that] everything pays off," Tsimikas told the club media channels about his new contract.
“But this keeps me fully motivated for the rest. As I’ve said in many, many interviews, this team has many, many things to achieve all together and I wanted to be from the first minute a part of it.
“More success, more work and more trophies. For me it is the most important thing, to win trophies, to be committed in every situation, to be part of all of this.
“I think this team has very big potential to win more trophies and we will go for it. Everybody, I think, is 100% there [and] focused for the next games and everybody is ready to achieve big things in the future.”