The club have faced criticism after letting a 3-0 lead slip against second-tier Coventry at Wembley.
The Spaniard’s existing deal still had two years to run but he has agreed terms for an additional 12 months.
Arsenal are set to finish above Chelsea for the second year in a row but can the Blues land a blow in the title race?
Diogo Jota has had an injury-hit season for Liverpool