"I'm very proud and feel quite humbled by the show of faith from the club and the manager in particular," Lallana told the website.
"Signing for a club like Liverpool is obviously a big thing but to re-sign shows you've obviously contributed enough that the people who make the decisions want you to stay longer.
"This is a really good place to be at the moment and for a player who wants to be part of something special, I can't think of a better club to commit your future to."
British media reported that Lallana had agreed terms on a three-year deal worth 110,000 pounds per week, with the option of a one-year extension.
Since moving to Anfield, Lallana has made 117 appearances for Liverpool, scoring 20 goals. He made his international debut against Chile in 2013 and won the England Player of the Year Award for 2016 in January.
"This is fantastic news for the club because Adam is a great player and an even better person," said manager Juergen Klopp. "I am so pleased that we will spend more time together now and have this common future with LFC trying to be successful here."
($1 = 0.8035 pounds)
(Reporting by Ed Dove; Editing by Clare Fallon)
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