Salah, who has scored 156 goals in 254 appearances for the Reds, helped Jurgen Klopp's men to a domestic double last season.
After five years at Anfield, Salah was rumoured with a possible move away from Merseyside. However, the 30-year-old has now pledged his future to the club, signing a new three-year contract which will keep him with the Reds until 2025.
Upon signing, he told the club's website: "I feel great and [I am] excited to win trophies with the club. It's a happy day for everyone.
"It takes a little bit of time, I think, to renew, but now everything is done so we just need to focus on what's next.
"I think you can see in the last five or six years the team was always going [upwards]. Last season we were close to winning four, but unfortunately in the last week of the season we lost two trophies.
"I think we are in a good position to fight for everything. We have new signings as well. We just need to keep working hard, have a good vision, be positive and go for everything again."
Salah joined Liverpool from AS Roma in June 2017 for an initial fee of £36.5million. The player arrived back in the Premier League with a chip on his shoulder following an underwhelming spell with Chelsea in 2013/14 and 2014/15.
The striker proved his doubters wrong after scoring 104 goals across his first two seasons at Anfield.
During his time with the club, Salah played a starring role as Liverpool ended their 30-year wait for a Premier League crown. The player also featured in three Champions League finals - winning one in 2018/19.
The Egypt international also claimed the FA Cup, League Cup, UEFA Super Cup and FIFA Club World Cup.
Salah sits ninth on Liverpool's all-time top scorers list, and finds himself just two efforts behind eighth-placed Michael Owen.
He added: "My message [to the fans] is the players in the team want to give our best next season to try to win all the trophies.
"As usual, you stay behind us and give us a big push and I am sure we are going to win trophies again [together]."