The 20-year-old striker, who joined the Reds in August 2015, put pen to paper on the deal at Melwood on Tuesday following a successful season in Belgium’s top flight with Royal Excel Mouscron that included 10 goals and four assists.
Awoniyi told Liverpoolfc.com: “I feel excited and I feel very happy.
“It has been three years since I first came to Liverpool. So far, so good. The last year was the best for me, it has been an amazing year so far.
“I just have to keep working hard each year and I believe one day the dream will come true.