The 18-year-old has been at the Merseyside club since 2009 after opting for the Premier League outfit over La Liga giants Barcelona but it is during this season that the Spaniard has been featuring more regularly in the first team.
"When I played in pre-season I wasn't ready at that moment for the first team but I have worked hard in training and with the U21s and got my chance," Suso told the club's official website.
"Brendan has given me the chance and I am really grateful for that as I am really happy here and want to stay for a long time. Liverpool is one of the biggest clubs in the world and the supporters are fantastic.
"We haven't won too many games so far this season but they still give us their full support at all times and sooner or later the wins will come for us."
The Reds currently sit 14th in the table and have yet to claim a victory at Anfield in the Premier League.