The 33-year old skipper committed himself to the Anfield cause on Monday and Rodgers feels like it is a very important piece of business for the Reds.
"I'm absolutely delighted, as you can imagine," he told the club's official website. "I've talked throughout pre-season about wanting to bring other players into the group, but this was one of - if not the - most important signings for us.
"He's an icon here at the football club, a real iconic figure for players and supporters. Also, importantly, his contribution at this moment in time is very much valued by myself and the staff.
"I think he's still got a good few years left yet. His level of performance last year was outstanding. He's been a great support for me coming into such a club, a brilliant captain, he's got great values and the leadership he provides is second to none."