The Liverpool manager put pen to paper on the deal he agreed in principle at the start of the month as revealed by Express Sport.
It will run until 2018 and in formally making the announcement Anfield principal owner John W Henry and chairman Tom Werner hailed Rodgers as a "hugely talented individual."
Liverpool finished runners-up to Manchester City in the title race having finished seventh last season and Henry and Werner believe he will deliver a first championship since 1990 during the course of his tenure on Merseyside.
A joint statement from the American duo said Rodgers' importance in shaping the club's future had been spelt out to them by the players.
It said: "We are very fortunate to have a hugely talented individual leading our football performance and in whom we place our trust to deliver the vision we share for Liverpool Football Club.
"Brendan is at the heart of what we, as an ownership group, are trying to achieve on the pitch. This season has reaffirmed everyone's belief that we can bring football success to Liverpool and we are all committed to working together to achieve that.
"Players and supporters have made it clear how important Brendan is to our success and so to have him commit to us for the long term is a great boost for everyone going forward."
I am both humbled and privileged to be offered the chance to extend my stay at this great club
Rodgers, who arrived from Swansea in 2012, had 12 months to run on his existing deal which also included the option to extend by a further year.
His new deal is a straight four-year agreement and will allow Rodgers to continue his impressive work.
"I am both humbled and privileged to be offered the chance to extend my stay at this great club," he said. "I am very happy to build on the foundations we have built over the last two years and now we move onto the next phase which I believe will be as exciting, challenging and rewarding
"I would like to place on record my thanks to the players and staff, who have been absolutely brilliant for me since the day I started at this great football club.
"I am grateful to our owners and senior management team who have supported me and who share my vision of how we can progress on the field.
"Finally, I must thank the supporters who are at the heart of everything we do here. I am honoured every day to lead this team and I thank the fans for their continued support as together we strive to bring success back to Liverpool Football Club."
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