Jürgen Klopp's side are believed to have moved to secure the future of the Cameroonian after a series of impressive showings alongside Virgil van Dijk.
The Athletic report that Matip will now remain at Anfield until at least the summer of 2021.
The 28-year-old centre-half had joined Liverpool on a free transfer from German side Schalke in 2016 and was originally handed a four-year contract.
However, Matip's terms were set to expire at the end of the current campaign - forcing Liverpool into action to ensure the defender's future remains in Merseyside.
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