The Brazilian midfielder put pen to paper after arriving at the team’s pre-season training camp in Evian.
Since joining the club from AS Monaco in the Summer of 2018, the ‘Lighthouse’ has made 122 appearances for Jurgen Klopp’s side and cemented himself as one of the best defensive midfielders in world football.
Speaking to LFCTV, the midfielder said: "Since the beginning of the conversation, I was really positive about it because it's what I wanted – staying in this club, keep playing for Liverpool. Now this is official and I'm really happy.
Easiest word to learn in Scouse, Fab? 👀— Liverpool FC (@LFC) August 3, 2021
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"These last three seasons I've been really happy here. I learned a lot with the manager, with all the staff, with the boys as well.
"We achieved things together and for me I think it's the best place to be, the best place to keep growing, to keep learning from the staff, from the boys. Hopefully we will keep achieving good things."
During his time on Merseyside, Fabinho has shown his versatility and reliability, displaying Man of the Match performances at both holding midfield and centre-half in the absence of Virgil van Dijk last season.
Since his arrival at Anfield, he has been a part of the clubs most successful spell in decades, winning the Champions League, Premier League, UEFA Super Cup & FIFA Club World Cup.
The ex-Real Madrid man is hungry for success, saying: "We know with these players we can go really far in all the competitions. In the last year we didn't win any trophies, so I think everyone is hungry to win more trophies, win more things, to keep our fans happy. Hopefully we will do this this season."