Lallana’s original contract was due to come to an end at the end of the month upon which he would have become a free agent.
The 32-year-old midfielder has decided to sign a short-term extension to his current deal in order to stay at the Reds until the end of July.
The Premier League season will resume next week and is likely to finish at the end of next month.
The England international is pleased to have committed his future at Liverpool until the end of next month.
Lallana told Liverpool’s official website: “I am really pleased to have the chance to finish this season it means a lot to me and my family.
“Now isn’t the moment to review my time here because the focus needs to be on the remaining nine matches and the club finishing the season in the best manner possible.
“Of course, one of the big personal positives about committing to this short-term extension is that I will now get to say goodbye to the people who mean so much to me in the right way.
“The gaffer has been different class and weve had an honest conversation about what my role will be in the remaining weeks.
“I want to contribute in the most positive way possible that helps him and the team, not just for the remaining matches of this season but also what they’ll need to consider for next.”
Liverpool Spell
Lallana has been on the books of Liverpool since the summer of 2014 when he joined from Premier League rivals Southampton for 25 million pounds.
The England international was a regular in the Reds team initially, but injuries and competition for places have seen him become a squad player under manager Jurgen Klopp in recent years.
The 32-year-old has made three starts and 12 substitute appearances in the Premier League for Liverpool so far this season, scoring one goal and providing one assist in the process.