The defender has featured in 16 matches for Brendan Rodgers's side this season, including four starts this month.
The 21-year-old told the club's official website: "It's a dream come true for me to just keep playing and keep being in and around the Liverpool first team. Now I'm back in the team and the team is up there challenging, it doesn't get any better.
"I'm on top of the world. When you hear the fans chanting your name, it doesn't get any better than that, and to be part of this side, who are going places I think, is massive for me."
Liverpool face Tottenham Hotspur tomorrow.