Kuyt, 30, joined Liverpool for nine million pounds from Feyenoord in 2006 and has become a fans' favourite due to his unselfish running and complete commitment.
"Since the day I first walked in, I felt welcome. That feeling has never left," said Kuyt, who hit a hat-trick in last month's Premier League win over Manchester United and has 11 goals in all competitions this season.
Former manager Roy Hodgson described Kuyt as a "Duracell bunny" due to his non-stop running and current boss Kenny Dalglish has been equally impressed.
"He's been a great servant to the club. He works tremendously hard, he's good in and around the dressing room, he's scored a few goals recently and his reward is an extension to his contract," Dalglish told the club's website.
"He's delighted with it, and we're delighted for him and to have him.
"Since I've come in, he's played up front, he can play wide right and wide left as well and gives us plenty of options.
"I don't know in what position he's happiest, but one thing that's undisputable is he's happy here so we'll just put him on the pitch and ask him to play."
