"I am very, very pleased. We have been talking for a few months now, ever since I arrived at the club," confirmed Director of Football Damien Comolli on LFC.tv.
"If you look at his playing record he started 46 games last year in all competitions and this year it will be between 45 and 50. He is exactly what we want.
"He has the right mentality, quality and attitude. He understands what this club is all about and even though the discussions went on for quite a long time he always said to me 'I want to stay and we need to find a solution'.
"Considering his performances on the pitch with us and with Brazil, and his attitude around the place - off the pitch he's a great professional, totally committed and dedicated and it's always team first when you speak to Lucas - that's why we wanted him to stay.
"He could have gone to many clubs because he is highly rated around Europe, but he always said he wanted to play for Liverpool."