Injuries have disrupted Agger's progress this season
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Liverpool's Danish international defender Daniel Agger has agreed a four-year contract extension which will see him remain at Anfield until 2014.
Agger, 24, has been hugely impressive since joining Liverpool from Brondby for £5.8m in 2006.
"Daniel is still young, but with great quality and will be a very important player for us in the years ahead," boss Rafa Benitez told the club website.
Agger's team-mates Steven Gerrard and Dirk Kuyt recently signed new deals.
The Danish defender has had his first-team chances restricted this season due to injuries and the form of Martin Skrtel.
"Clearly we do not want to lose key players. Players like Mascherano and Xabi Alonso have long contracts so we are in a strong position."
Rafa Benitez
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Agger had also been linked with a move to Italian club AC Milan.
"I'm sure there were many other clubs monitoring the situation closely, but throughout our discussions, Daniel made it clear that he wanted to stay at Liverpool and achieve success here," said Benitez.
"I'm delighted we've secured his future at Anfield.
"This is extremely good news for Liverpool moving forward and demonstrates our intention to build on the progress we have already made this season."
Agger has played 76 times for Liverpool since moving to England and has scored six goals, including a recent long-range effort against Blackburn.
Meanwhile Benitez has been quick to deny speculation that he may sell Xabi Alonso in the summer to fund a transfer spree, while making it clear that Javier Mascherano will also be staying despite interest from other clubs.
"Javier is happy here, with the fans, the club and the manager," insisted Benitez.
"He has already said no to one club, a good side. He wants to stay but he cannot stop big clubs asking about him.
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MagicCharlieBeanz
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"If you are a top class player, people are always asking about you.
"He has tried to be polite and correct. Now I have had a conversation with him and it was very clear he wants to continue to play for us, I do not see this as a big problem.
"Clearly we do not want to lose key players. Players like Mascherano and Xabi Alonso have long contracts so we are in a strong position."
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