Dirk Kuyt has agreed a new contract with Liverpool which will keep him at Anfield until 2013.
The 30-year-old's previous deal was due to expire next summer, but, following positive talks with the Anfield hierarchy, he has agreed to sign on for another season.
"I am very happy," Kuyt told Sportspromotion.
"We have been working on something, but always with the intention to reaching an agreement. The club had this approach too, so I must say that all conversations were conducted in a friendly atmosphere.
"It fits perfectly with the feeling here at the club. From the very first day I walked in, I felt welcome. That feeling has never left."
Kenny Dalglish was satisfied with the move as he praised the Dutch international, who has scored nine goals in 27 appearances this term.
"Dirk is the Liverpool player of choice. He never gives up, fights with everything, and he is simply a good footballer. He scores goals and it's as simple as that, and often in major competitions or at crucial moments, like the recent Manchester United game," Dalglish said.
"Dirk is happy with the extension, and I am sure we will enjoy having him around longer."
The Reds are chasing a top-four finish, and their win over Manchester City has left them within eight points of that objective.
They face Arsenal away on Sunday, but Kuyt is certain they can challenge for the Champions League places.
"Every match is a kind of final for us," said Kuyt.
"We have become stronger after attracting Luis Suarez and Andy Carroll. The group is fit and eager. There is still everything possible, I'm convinced.''
Carroll scored twice in the 3-0 victory over the Citizens which has reignited faint hopes of a fourth place finish.