كتب : Amro Hassan
The Spaniard, whose contract with Liverpool was going to expire by the end of next season, has been in talks with the club board over a new contract since the start of the current campaign.
"I'm delighted to sign this new deal. I love the club, the fans and the city and with a club like this and supporters like this, I could never say no to staying," Benitez said.
"I always made clear I wanted to be here for a long time and when I complete my new contract it will mean I have spent over a decade in Liverpool.
Since taking over Liverpool in 2004, Benitez made history by guiding the Reds to their fifth UEFA Champions League title in his first season with the club.
The ex-Valencia coach led Liverpool to the 2007 Champions League final, and the club are still competing in both the Premiership and the Champions League this season.
Owners' Delight
From their side, club owners Tom Hicks and George Gillett expressed their delight after Benitez signed the contract extension.
"It is wonderful news that Rafa has made a long-term commitment to the football club," Hicks said.
"With Rafa continuing to manage the team, we can look forward to more great football and success on the pitch. He has special abilities and qualities which are admired here at the club and around the world," Gillett added.