The Reds captain's previous deal was set to expire at the end of the season but his new deal is set to extend his stay at Anfield until 2027.
Van Dijk has enjoyed a hugely successful spell at Liverpool since joining in a £75 million move from Southampton in 2018 and has won the Premier League, the Champions League, the FA Cup and two League Cups.
He is also on the cusp of captaining the Reds to another league title as they are just two victories away from being crowned Premier League champions.
Van Dijk told Liverpool's website about his new contract: "I'm very happy, very proud. There are so many emotions obviously that go through my head right now speaking about it.
"It's a proud feeling, it's a feeling of joy. It's just incredible. The journey I've had so far in my career, to be able to extend it with another two years at this club is amazing and I'm so happy."
The Dutch international had been linked with some of Europe's top clubs as speculation swirled about his future at Anfield but insists that "it was always Liverpool" for him.
Van Dijk said: "It was always Liverpool. That was the case. It was always in my head, it was always the plan and it was always Liverpool.
"There wasn't any doubt in my head that this is the place to be for me and my family. I'm one of Liverpool. Someone called me the other day an adopted Scouser - I'm really proud to hear these things, it gives me a great feeling."
The defender's contract extension comes just six days after Mohamed Salah committed his future to the club and he had spoken about what playing for Liverpool means to him after scoring the winning goal in last weekend's game against West Ham.
Van Dijk said: "Being successful with Liverpool, the culture of the club, everything that embodies Liverpool - that is just part of me.
"I love the club, that's pretty obvious. I think you can see that in the way I speak about the club, the way I work for the club in terms of what I do on the pitch and off the pitch, and that will always be the same."