Agger joins Luis Suarez, Martin Skrtel and Jonjo Shelvey in penning a new contract this season, ensuring he will add substantially to his appearance tally of 177 games for the club.
"It's great when one of your best players commits to the vision going forward," said Rodgers.
"Daniel is a terrific player and I am absolutely delighted he has committed himself. It's a big boost for everyone connected with the club.
"He's one of the best center-backs in world football. His balance, his reading of the game, his defensive qualities and his ability to bring it out from the back is outstanding.
"He's in love with the club and the supporters, and I'm really looking forward to continuing to work with him.
"Daniel made it very clear to me in my very first conversation with him when he was at the Euros with Denmark that he wanted to stay and play a part in the future here.
"There was interest of course but I never felt like I had to fight to keep Daniel here. He always made it very clear to me that he wanted to be at Liverpool.
"He saw this way of working as a way of developing his talents even more and demonstrating his great qualities.
"I never felt there was ever a time when he wanted to leave and he knew perfectly well from my situation that I didn't want him to leave either."
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