The financial terms of the agreement remain confidential but British media have reported that the current deal is worth about 20 million pounds ($29.83 million) a season.
"This extension further demonstrates the great strength of our long-term relationship and the success of our partnership with Standard Chartered," Liverpool's Chief Commercial Officer Billy Hogan said on the club's website.
"The sponsorship of the Liverpool shirt is extremely prestigious and only five brands will have adorned the shirt in the 40 years since we created the sponsorship opportunity."
Peter Sands, Standard Chartered's group chief executive, said: "Liverpool Football Club is a fantastic club and hugely popular across our global footprint.
"We are very pleased to be able to continue this collaboration, and look forward to what we can achieve together in the future."
(Writing by Ken Ferris; Editing by Peter Rutherford)
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