New contract for Torres

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Although the Spain striker still had four years remaining on his original six-year contract, Liverpool have offered him improved terms and added an option to take the deal through to 2014.

Liverpool manager Rafael Benitez said: "Fernando is one of the best strikers in the game today and, at his age, can only get better."

He added: "Every major side would want him in their team, but he has shown how much he wants to achieve success at Liverpool by committing his future to the club.

"He's a special talent but still has the hunger to improve his game."

Benitez is looking to secure the futures of his key players after watching them push Manchester United all the way in the title race this season before settling for second place.

Dirk Kuyt, Daniel Agger, Steven Gerrard and Benitez himself have already signed new contracts in the last two months.

"We've made huge progress this season and now we need to take the next step," Benitez added on the club's website.

"We are building something special here and securing such important players on long-term deals means we can move forward with confidence. This sends out a very positive message to everyone connected with the club."