The 21-year-old has come through the Liverpool youth ranks to play 81 times for the first team since making his debut in 2018.
Jones’ previous deal would have expired in the summer of 2025 but Jurgen Klopp’s side see the Englishman as a key component for the present and future.
Jones has scored eight times and laid on ten assists for his teammates in his Liverpool career but is yet to get off the mark this term in his seven appearances.
"First of all, I want to thank the coaching staff for having the belief in me as always, for giving me the chance," Jones told Liverpool's officials website. "And of course for me, I'm over the moon, I'm buzzing. It was an easy thing [to decide to renew].
"It's my boyhood club, I'm a Scouser, I've supported the club for the whole of my life, so yeah, I'm buzzing and I can't wait to see what the future holds.
"For everything, really. I think if I was at a different club as well, my goal and aim and dream would always be to come here and play. But I'm here now, I've been here since I was six, I've gone all the way through.
"I've supported the team for the whole of my life and especially now with how the team is and the coaching staff around me, I just feel that it's the perfect place for me and again, as I said, I can't wait to see what the future holds."
