Peter Crouch scored a hat-trick as Liverpool thumped Arsenal 4-1 to jump into the third place in EPL.
Twelve months ago Liverpool were ripping up the record books on the way to their first English top-flight title for 30 years but defeat by Everton on Saturday left them mulling a host of far less flattering statistics.
The new deal will keep the Spaniard at Anfield for another four years until 2010.
After the Champions League game, Liverpool host Arsenal in the league on Sunday.
Former Livepool defender Phil Thompson is in India to promote a club-backed football program - 'Go Forward'. Through this initiative, talent will be spotted from a pool of 2,000 kids from 80 municipal schools of Mumbai (BMC). They boys will pass through three levels of coaching and training before 32 of them will receive rigorous training from I-League and Liverpool FC coaches.
The malaise at Liverpool was laid bare on Saturday when they conceded a last-minute equaliser at Stoke City to complete a miserable week for the Anfield club. After losing at home to Championship (second division) Reading in the FA Cup on Wednesday, Robert Huth's tap-in to earn Stoke a 1-1 draw prevented a welcome shot in the arm for a proud Liverpool in poor health on and off the pitch.
Liverpool midfielder Lucas Leiva has signed a new long-term contract, the club said on Wednesday.
Images from Wednesday's action in the UEFA Champions League.
The walkout by home fans in the 77th minute over rising ticket prices is no excuse for Liverpool's 2-2 Premier League draw with Sunderland on Saturday, captain Jordan Henderson has said.
The Champions League quarter-final between Liverpool and Manchester City is one of the most anticipated games of the season pitting the Premier League's runaway leaders against the top scorers in Europe's elite competition.
Lionel Messi, Luis Suarez and Neymar were all on target as holders Barcelona beat Athletic Bilbao 3-1 on Wednesday to overturn a deficit from the first leg and advance to the quarter-finals of the King's Cup.
Tottenham moved up to seventh place with 36 points from 22 games
The Spanish striker completed his nine million euros transfer from Real Madrid to Liverpool after passing a medical.
Steven Gerrard says he has been dreading the moment he must wave goodbye to his adoring Anfield fans .
Salah back in Liverpool squad but may not be risked at Genk, says Klopp
Chelsea showed by beating Manchester United that they will not give up the Premier League title without a fight and Liverpool are likely to be just as tenacious when they face United at Anfield on Sunday.
Chelsea showed by beating Manchester United that they will not give up the Premier League title without a fight and Liverpool are likely to be just as tenacious when they face United at Anfield on Sunday.
Alexander-Arnold, seeing the Spanish club's defenders still getting organised, feigned to walk away from the corner before racing back to whip the ball to the unmarked Divock Origi, who clipped it past Marc-Andre ter Stegen.
Liverpool and Chelsea drew 1-1 in the first leg of their Champions League semi-final at Anfield on Tuesday after a stoppage-time own goal from the home side's John Arne Riise. Dutchman Dirk Kuyt gave Liverpool the lead after 43 minutes.
Liverpool captain Steven Gerrard announced that he would be staying at Anfield.
Liverpool manager Juergen Klopp has dismissed claims that it is the perfect time to face Tottenham Hotspur because of injuries to key players and concern over striker Harry Kane's form and freshness.
Sahara India Group has pulled out of the race to buy a 51 per cent stake in the financially troubled Liverpool Football Club, one of the most successful clubs in the history of English soccer.
Whatever happens, there will be no shortage of drama between now and May 12.
Liverpool can eliminate one of their two rivals from the Premier League title race by beating Chelsea on Sunday, and the way the dice is rolling for them they might even have one hand on the trophy by the end of the weekend.
Premier League leaders Liverpool stumbled again at home on Saturday, needing two Steven Gerrard goals to salvage a point in a 2-2 draw with Hull City.
Barcelona crushed Slovakia's Puchov 8-0 at the Nou Camp to go through 9-1 on aggregate.\n\n
Images from the English Premier League matches played on Saturday.
Liverpool ended their 85-year Manchester United jinx when a first-half Peter Crouch header gave them a 1-0 win in the FA Cup fifth round.
Fernando Torres scored his first goal in 10 games as Liverpool kick-started their Premier League campaign with a 1-0 win over West Bromwich Albion at Anfield on Sunday.
One of the most eagerly-awaited clashes of the Premier League season turned into a major letdown as Liverpool and Manchester United nullified each other in a largely undistinguished goalless draw at Anfield on Monday.
The battle for Champions League qualification continues with fourth-placed Aston Villa away to Luton Town on Saturday and Tottenham Hotspur, who are five points behind with a game in hand, hosting Crystal Palace.
Daniel Sturridge's return from injury to the starting line-up is a massive bonus and will bring the 'fear factor' back to Liverpool, captain Jordan Henderson has said.
Liverpool belatedly kick-started their year and damaged Tottenham Hotspur's slender Premier League title hopes as Sadio Mane struck both goals in a 2-0 victory at Anfield.
Liverpool head for a decisive Champions League clash at Olympique Lyon on Wednesday with 10 players injured or doubtful for the game and coach Rafa Benitez facing the biggest crisis in his five-year Anfield reign.
Manager Gerard Houllier will hope his policy of continuity pays off after an unfulfilling 2002-03 season.
Steven Gerrard was again Liverpool's saviour on Sunday as the inspirational captain secured a 1-1 draw with Everton in the Merseyside rivals' fourth-round FA Cup tie at Anfield. Gerrard struck nine minutes after halftime to cancel Joleon Lescott's first-half header as the game finished with the same score as their Premier League meeting on the same ground last Monday.
IMAGES from the English Premier League matches played on Sunday.
Raheem Sterling's stunning individual goal earned Liverpool a 1-1 draw with Chelsea in a rip-roaring League Cup semi-final first leg at Anfield on Tuesday but the dominant Merseysiders could be left to rue a missed opportunity.
And Liverpool fans could not keep their calm as they made their joy known on social media sites.
Captain Steven Gerrard's 87th minute goal turned out to be a late winner for Liverpool as they inched closer to the top four in the English Premier League table after a 2-1 win over Queens Park Rangers.
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