Jones has committed his future to the Merseysiders after joining the club in 2010 from Middlesbrough, having made 14 appearances in his two-and-a-half years at the club
The 30-year-old was brought to the Reds' in 2010 by former boss Roy Hodgson from Middlesbrough for a free transfer.
Since then, he has served as back-up to Pepe Reina and has played 14 games in total for the Merseyside club, including 10 this season in all competitions after the Spaniard went down with an injury.
In those games, he kept three clean sheets, including in the Europa League home game against Anzhi Makhachkala.
The fringe Socceroos shot-stopper, who has made three appearances for his national side since 2007, has now committed his long-term future to the club after proving his worth to the team in this campaign.
Jones joins a number of players including Luis Suarez, Martin Skrtel, and Daniel Agger to commit their future to the club this season.