"There is nowhere else in Europe I want to be," Torres told the News of the World.
"I believe we are on the verge of something special here and I am delighted to commit my future to this club."
And Torres added: "You would not get top players signing new contracts if they did not think there were good times ahead. I expect many trophies for Liverpool in the years to come.
"The manager will know what he wants and what areas he wants to improve next season and whatever he decides we know it will be the right choice because all the players and staff here have total trust in him.
"Our aim has to be the best. If we have no desire to be the best in England and in Europe then there is no point even turning up for work."