The former Tottenham midfielder has done an excellent job for the Reds in the cup games and new manager Jurgen Klopp has decided to reward him with a new contract.
Stewart primarily operates as a defensive midfielder and has been a very good backup option for the Brazilian midfielder Lucas Leiva.
The young midfielder made his mark in the cup games for Liverpool and was then handed his Premier League debut against Aston Villa earlier this month.
The 22-year-old will be disappointed after picking up an ankle injury that has stalled his progress but claimed that he is delighted with the faith the club has shown in him.