Kenny Dalglish and First team coach Steve Clark have been rewarded for reviving the team's fortunes with three-year contracts.
Dalglish said: "I said when I took the job on in January that I was just happy to help the club out for the remainder of the season. Now the owners have decided in their wisdom that they want me to stay a little longer and it's fantastic news for both myself and Steve Clarke that we have signed these contracts.
"Both (principal owner) John (Henry) and (chairman) Tom Werner have taken their time to assess what was best for the football club and bring in the people they wanted to take the club forward. They are both winners, but understand what the supporters want from a Liverpool side and the way that we should go about things.
"This is a unique football club and I'm delighted to have the opportunity to help build something special here again.
"I want to salute the efforts of all the players as they have been fantastic and thank everyone at the club for the welcome they have given me since I returned in January.
"I also want to pay tribute to Steve Clarke's input since we started working together as he has brought great experience and knowledge to the role. The players enjoy the training sessions, understand their relevance to our actual football games and have responded brilliantly."
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