The Spain international has improved the terms of a six-year
contract originally signed when he arrived in July 2007. This
reflects his reputation as one of the world's top strikers.
El Nino has bagged 50 goals in 83 appearances since joining from
Atletico Madrid.
He also scored the winner as Spain lifted the Euro 2008 trophy last
summer, helping to secure a Ballon d'Or nomination.
"I want to remain here," said Torres. "Since arriving at Liverpool
I feel that there's a bond and commitment.
"We listened to the club's offer, which came on the back of two
seasons of positive work.
"My objective now is to win a trophy with Liverpool next
year."
The new deal includes an option to extend his stay a further year
to 2014.