Reina's deal is further good news for the club after Thursday night's Europa League quarter-final victory over Benfica at Anfield.
It also follows new long-term contracts for Fernando Torres, captain Steven Gerrard, Dirk Kuyt, Daniel Agger and Yossi Benayoun in the past 12 months.
Reina arrived at Anfield in a £6m deal just weeks after Jerzy Dudek had earned a place in club folklore with his heroics in 2005 Champions League final penalty shoot-out victory over AC Milan.
The Spaniard took over from Dudek and made his own name with penalty saves in shoot-outs in the 2006 FA Cup final and 2007 Champions League semi-finals.
Reina has since established himself as one of the leading goalkeepers in the world although he remains second choice for his national side behind Real Madrid's Iker Casillas.
Reina came through the youth ranks at Barcelona and goalkeeping is in his blood; his father Miguel played in the position for both Barcelona and Atletico Madrid.
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