Ayre said the club and the player would review the contract situation in 2015, but suggested Gerrard's services had been secured "until the end of his career".
Ayre said: "It's fantastic for everyone - the club, Steven and the fans.
"He is - and always has been - such a big part of Liverpool Football Club.
"Particularly in this day and age, it's rather unique to find a local player who has given his whole career to his club.
"We're pleased today to add an extension to his existing agreement and that keeps him here until the end of his career.
"We've said what we'll do in two years' time is review it again and see how happy Steven is.
"We seem to always be happy with him, so hopefully we'll just continue in that vein."