The two-year contract extension will keep Klopp with the Bundesliga club until the summer of 2018.
Klopp’s assistants Zeljko Buvac and Peter Krawietz have also signed two-year contract extensions with Dortmund.
The 46-year-old told a press conference: “No one needs to call until 2018.
“We feel a lot of extraordinary trust and confidence in this club. This is a clear sign.
“We want to have the tranquility to plan the future of this wonderful club together.”
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.