"It is a matter of great pride for me to represent the famous name of Liverpool," said Mascherano.
"I want to play my part in making this club even more successful. I want to ensure this is the last season without a trophy for a long time.
"We had a season which had many highlights but also left us with a feeling that maybe we could have achieved more.
"There are some important lessons we must think about as a team during the summer months and learn before we come back for next season, on top of our own individual thoughts.
"We lost too many points at home - we can't do that next year. We lost too many late goals and didn't kill teams off sometimes when we had the chances."