He follows in the footsteps of Steven Gerrard, Jamie Carragher, Xabi Alonso, Pepe Reina and Momo Sissoko, and the manager believes this is another major step along the road to building a solid and successful squad at Anfield.
"Steve is a quality player with consistency perhaps being his greatest quality. He always plays at a very good level. It's not very often that you see him have a bad game. He's a player you can always rely on and, to be fair, it's been that way since I came.
"From training with him every day, you can see just what a clever player Steve is and his form throughout the last three years has not surprised me. From day one he was eager to learn and very receptive to our ideas. I always knew he would be a good player for us.
"He's one of our more experienced players now but I still expect him to improve with age because he'll then be able to analyse the game in more ways and that will be another major positive."