The Australia international is deputy to Jose Reina but stood in ably when the Spaniard was sidelined for a month with a hamstring injury.
Jones has made 10 appearances so far this season, by far his best run in the side having amassed a total of just 14 since joining from Middlesbrough in 2010.
A week ago manager Brendan Rodgers moved to dismiss speculation he was preparing to bring in a new goalkeeper in the January transfer window.
The Reds boss was linked with moves for Birmingham's England goalkeeper Jack Butland and young German prospect Ron-Robert Zieler.
That led to suggestions Reina's future was in doubt but Rodgers rejected that notion, insisting he was very happy with the two goalkeepers he had.
"Of course you are always looking for talent but what we have is one of the best number one keepers in the Premier League in Pepe Reina and then Brad Jones, who was a number three or number four keeper here but has really kicked on since the summer," said Rodgers a week ago amid the speculation about the goalkeeping situation.
"In the games Brad has played he's showed he is a very loyal and supportive number two.
"Our job then below that is to ensure we have top young talents who can then hopefully challenge at the top end."
In signing his new contract Jones follows the likes of Luis Suarez, Martin Skrtel, Daniel Agger and Jonjo Shelvey who have all extended their deals since Rodgers' arrival in the summer.
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- Brendan Rodgers