This is a huge deal for Liverpool, as Coutinho has been linked with a move to Barcelona for months and they not currently playing in the Champions League.
There has been a trend at Liverpool over the last decade of top performers such as Xabi Alonso, Javier Mascherano, Fernando Torres, Luis Suarez and, most recently, Raheem Sterling all leaving to further their careers.
But Coutinho obviously believes that Jurgen Klopp has the Reds on the right track and the Brazilian star was happy to extend his stay on Merseyside.
Coutinho said: ‘I am very happy to sign a new contract here. It is a club that I am very grateful to and this shows my happiness here. I will work much harder to repay the belief shown in me.
‘I signed this new contract to stay here for a few more years because it’s a great honour for me.
‘It gives me great happiness because I was welcomed here with open arms by everyone at the club and the supporters right from my first day. I am very thankful to this football club for everything.
‘It’s not just me — since me and my family arrived here we have been welcomed with open arms by everyone.
‘We feel at home in this city, we feel a part of this city. It is a very important day for me, my wife and my daughter. I am happy — and everyone is happy at home.’
‘I think everyone knows what a great footballer Phil is, that is not in question — but not everyone sees what an incredibly positive character he is and what a big influence he is on the dressing room” said Klopp.
‘I knew of Phil before I came to Liverpool and I was well aware of what a talent he was, but since arriving here I have not only witnessed his ability up close, but also his ever-continuing development.
‘He is truly world-class — in that very top bracket.
‘The fact he wants to stay here and be part of what we are looking to build and develop shows his personal commitment is to make himself better and be an integral part of something that is very special.
‘We have total belief in our project, but when a player of Phil’s calibre and status commits for this length of time it shows that our faith is shared throughout the game. He knows he can fulfil his dreams and ambitions here at Liverpool.
‘This is a big statement.’