Salah had a remarkable first season with Liverpool, scoring 44 goals in all competitions and helping the club reach the Champions League final.
He was named the PFA Players’ Player of the Year and Football Writers’ Association’s Footballer of the Year.
“I think this news can be seen for what it is; rewarding a person who performed and contributed greatly for the team and the club last season,” manager Juergen Klopp told the club’s website.
“It demonstrates two things very clearly also – his belief in Liverpool and our belief in him.”
“Mo reflects where we are as a team, I think. Last season was special with many special moments – but we want more.”
The 26-year-old netted 32 times in the Premier League, breaking the record for the most goals scored in a 38-game season, and helped the Merseyside club to a fourth-place finish.
