He is desperate to bring success back to the club, but admits the Merseysiders need more new faces – despite already snapping up four players this summer.
Gerrard, 33, has spent his entire 15-year professional career a Liverpool, scoring 158 goals in 630 appearances, but only had a year left on his contract.
He said: “I’ve been here that long and so to extend, it’s a big day for me and I’m really happy for myself and my family.
“I’ve got a lot of confidence and belief in my team-mates and in the coaches we’ve got.
“That’s the reason why I feel as if we can move forward together and get success back soon.
“Every fan out there, and the players are no different – we want to see a few more faces to strengthen the team and squad even more.
“It is an exciting time when you get a few new faces in to freshen the squad up – you’re at the beginning of the season and it’s a fresh start.“It is an exciting time when you get a few new faces in to freshen the squad up”Steven Gerrard
“There are trophies to be won and things to achieve. I won’t lie to you, I’m really excited at the moment.”
Liverpool have already signed Simon Mignolet, Kolo Toure, Iago Aspas and Luis Alberto this summer – but face the prospect of losing star man Luis Suarez.
Whatever happens though, Gerrard clearly believes the club are on the up after failing to win any silverware or qualify for the Champions League last season.
The England skipper admits it’s a huge 12 months for him with the World Cup on the horizon next summer – but he insists his only focus right now is Liverpool.
He said: “It’s a big year – it’s a World Cup year. We’ve got a lot of hard work to do to get to the World Cup first.
“As a footballer, you concentrate on the next game and it’s very important you’re not distracted by the thought of qualifying or getting to a World Cup.