The 26-year-old’s new deal will see him remain at Anfield until 2023.
The Senegal international has scored 40 goals in 89 games for Liverpool since moving from Southampton for £34m in the summer of 2016.
Mane says the move was “the best decision” of his career.
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“I am very happy, very happy to extend my time at Liverpool,” Mane said.
“It is a great day for me and now I am looking forward to everything – to helping the team, to helping the club achieve our dreams and, especially, to win trophies.
“I’ve always said, when I knew I had a chance to come here I didn’t have to think twice. The right club in the right moment and with the right coach as well. I came here and was very happy.”
