Benitez announced his intention to remain with the Premiership side towards the end of last season and he has now officially put pen to paper on his new contract.

He told the club's official website, "I'm delighted to have now signed the contract.

"There was never going to be a problem once we reached an agreement last season, and now all the documents have been signed and sent to the club."

Benitez continued: "I'm very happy at Liverpool and hope we can enjoy more success in the seasons to come."

The deal represents a one-year extension to his original contract and ensures he remains on Merseyside until 2010.

The 46-year-old, who took charge almost two years ago, enjoyed a memorable first season in charge of the Anfield club.

Although Liverpool finished fifth in the Premiership, they finished 2004/05 as kings of Europe after coming from 3-0 down to beat AC Milan on penalties in the Champions League final in Istanbul.

Last month he led the team to more silverware -- courtesy of another penalty shoot-out.

Liverpool won the FA Cup, beating West Ham 3-1 on penalties after the match finished 3-3 following extra time at the Millennium Stadium.