Salah prolonged his stay at Anfield on Friday until the summer of 2025 following a period of uncertainty about his long-term future, with his previous terms set to expire next summer.
Salah joined Liverpool from AS Roma in the summer of 2017 and has since taken his game to a whole new level.
The former FC Basel and Chelsea forward has won the Premier League, UEFA Champions League, UEFA Super Cup, FIFA Club World Cup, Carabao Cup and FA Cup with Liverpool.
A record of 156 goals in 254 appearances across all competitions ranks Salah ninth on Liverpool's all-time top scorer's list.
The Egypt international has won the Premier League golden boot three times and has been crowned Professional Footballers' Association (PFA) player of the year on two occasions.
“This is a special treat for our supporters to enjoy their weekend even more. I’m sure there will be some celebrations for this news tonight,” the manager told Liverpool's official website.
“Really pleased – really, really pleased. It’s the best decision for us and best decision for him. He belongs with us I think. This is his club now.
“Of course it has taken a little time but that’s absolutely OK and the best things are always worth waiting for anyway. Mo is one of the best players in the world; it’s only normal there are things to sort when you are at his level. So big credit to Julian Ward and Mike Gordon for guiding us to this destination.
“I have no doubt Mo’s best years are still to come. And that’s saying something, because the first five seasons here have been the stuff of legend. Fitness-wise, he’s a machine – in the most incredible shape. He works hard on it and he gets his rewards. His ability and his skill level gets higher each season, and his decision-making has gone to another level also.
“He is adored by his teammates. As coaches we know we work with someone special. And the supporters have crowned him a king. So, very cool. “It is just great news. It makes me smile thinking about it. He stays with us for longer and it means we can achieve more together.”