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 Merseysiders including 10 this season in all competitions after the Spaniard went down with an injury.
In those games he's kept three clean sheets including in the Europa League home game against Anzhi Makhachkala.
The Australian keeper, 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.