The Premier League side, who finished second in the Barclays Premier League last season, signed the original deal with Standard Chartered in July 2010 with a two-year extension agreed in July 2013.
The sponsorship has now been extended further to run until May 30, 2019. Financial terms of the agreement remain confidential.
Billy Hogan, Liverpool FC's chief commercial officer, said: "This extension further demonstrates the great strength of our long-term relationship and the success of our partnership with Standard Chartered.
"The sponsorship of the Liverpool shirt is extremely prestigious and only five brands will have adorned the shirt in the 40 years since we created the sponsorship opportunity.
Meanwhile, Liverpool midfielder Jordan Henderson has signed a new five-year deal, worth £100,000-a-week.
It ends months of talks between the parties, with the ex-Sunderland player committed to the club until 2020. "There has been talk about it for a while now," the 24-year-old told the club website.
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