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The England international, currently out for up to six weeks with a fractured leg, has been impressive this season both alongside Virgil van Dijk in the centre of defence and also at right-back, where he has alternated with Trent Alexander-Arnold.
Gomez, 21, joined Liverpool from Charlton in 2015 for a fee of £3.5 million ($4.5 million).
An ankle problem sustained playing for England in March meant he missed the Champions League final but he has bounced back from that to establish himself as Klopp's preferred partner for Van Dijk.
"Signing this new deal means the world to me," Gomez told Liverpool's website.
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"I've been at the club a few years now and have had the pleasure to play for Liverpool and experience what that means, so I am delighted to get the chance to extend my contract here."