The new contract will keep Kelly at Anfield until the summer of 2014.
“Since I was first able to kick a football, all I’ve wanted to do is play for Liverpool,” Kelly told the Liverpool Echo.
“I need to keep pushing and progressing now I’ve got the contract. The hard work starts now to try to make a name for myself in the team.
“I’ve settled in a lot more this season and found myself getting used to the players.
“It’s great being around the players that are in our squad because of their quality and it’s the best place to be at in terms of helping my development.
“At the minute I’m enjoying it. I’ve been at Liverpool since I was seven, and the feeling I’m getting playing for Liverpool and getting the chances I’m getting – I don’t want it to stop.”
