Rodgers agreed terms shortly before the end of the season had has now penned what is understood to be a four year deal, keeping him on Merseyside until 2018.
Liverpool chairman Tom Werner said the contract was recognition of Rodgers successfully applying Fenway Sports Group vision for the club, which narrowly missed on the Premier League title a fortnight ago.
Rodgers said he believes the groundwork has been completed in his first two seasons and he expects the improvements to continue.
“I am both humbled and privileged to be offered the chance to extend my stay at this great club,” said Rodgers.
“I am very happy to build on the foundations we have built over the last two years and now we move onto the next phase which I believe will be as exciting, challenging and rewarding
“I would like to place on record my thanks to the players and staff, who have been absolutely brilliant for me since the day I started at this great football club. I am grateful to our owners and senior management team who have supported me and who share my vision of how we can progress on the field. Finally, I must thank the supporters who are at the heart of everything we do here. I am honoured every day to lead this team and I thank the fans for their continued support as together we strive to bring success back to Liverpool Football Club.”
In a joint statement released by Liverpool on Monday afternoon, principal owner John Henry and Chairman Tom Werner added: “We are very fortunate to have a hugely talented individual leading our football performance and in whom we place our trust to deliver the vision we share for Liverpool Football Club.
“Brendan is at the heart of what we, as an ownership group, are trying to achieve on the pitch. This season has reaffirmed everyone’s belief that we can bring football success to Liverpool and we are all committed to working together to achieve that. Players and supporters have made it clear how important Brendan is to our success and so to have him commit to us for the long term is a great boost for everyone going forward.”
Rodgers is currently planning ahead to next season, hoping to sign at least five players in preparation for Liverpool’s return to the Champions League.