The Uruguayan has been pivotal for the club this year during a transition under Brendan Rodgers, firing the goals to keep them in the hunt for a Champions League spot.
“I hope [to be at Liverpool] for a very long time because it’s a massive club that kids dream about playing for”, he told his club’s official site.
“I’ve been very proud to be at a club like Liverpool and to have made the decision to come here. In two years I’ve lived through some spectacular and very special moments that I will never, ever forget.”
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?