The 19-year-old has been linked with Manchester United and Wigan recently.
“It’s another step forward in my professional career,” said De Gea.
“I’ve spent all my sporting life at Atletico Madrid and for me it’s an honour and a dream to be able to play in the first team having come up through the Rojiblanco youth system.
“Everything is happening very quickly, but my objective is to continue working as I’ve always done,” added De Gea on his club’s website.
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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.