The midfielder, who turns 33 in May, has played every minute of Liverpool's 30 Premier League matches this season and that has seen him score eight goals and provide nine assists.
"We had confidence that, if managed correctly, Steven would be able to achieve everything he has achieved this year," Driscoll said.
"Four or five years ago, people were saying it was very unlikely that Steven - with his injury history - would ever achieve this, let alone reach the milestones he has hit this year in terms of playing time at the age of 32.
"It's a credit to Steven himself; his professionalism is second to none.
"Steven has confidence now that he can play at the highest level into his mid-thirties - that's fantastic news for Liverpool."