The 19-year-old is widely regarded as one of the best players from Liverpool’s academy.
Jones made his Premier League debut against Bournemouth in December last year and has appeared eight times in all competitions for Jurgen Klopp’s men this season.
Jones endeared himself to Liverpool fans earlier this year when he scored the winner against Merseyside rivals Everton at Anfield in the FA Cup third round.
"For me, as everyone knows, it's massive," Jones told Liverpool's official website.
'It's my boyhood club and it's the whole of my family's club as well, so for me it's huge. I think the environment and stuff is all positive and keeps me as positive as I can.
"Of course, we're working with a great manager and around the best team in the world, so for me it was easy and [I'm] extremely proud."
"It's a perfect environment. I've got great boys around that help me every day – Hendo (Jordan Henderson), Millie (James Milner), [Adam] Lallana, Fabinho, the whole of the team is perfect for me to watch every day in training," he added.
"But to be involved with them, you pick up so many things and the detail in what they do and they do everything perfect – their professionalism around the place, it's perfect.
"So I'm picking up all that and taking it into my game and to me as a person. It's paying off right."
