The 26-year-old Uruguayan, who was linked with a move away from the club in the close season, said he was "proud" and "delighted" to extend his deal.
"I am delighted to have agreed a new deal with Liverpool and have my future secured for the long term," Suarez said on the club website.
"We have some great players and the team is growing and improving all the time. I believe I can achieve the ambitions of winning trophies and playing at the very highest level with Liverpool. My aim is to help get us there as quickly as possible."
Suarez's superb form has been a key factor in Liverpool's good start to the season, helping the club to second in the Premier League, two points behind leaders Arsenal. (Reporting by Toby Davis; editing by Ed Osmond)
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