The 19-year-old put pen to paper on his deal at the Reds’ training complex on Wednesday morning.
Moments after signing, Wisdom told Liverpoolfc.com: “It’s a great honour to sign a new contract at the club and I’m very happy.
“It was an easy decision to make — as soon as they offered it to me, I grabbed the opportunity with both hands because it’s a great club and I just want to continue to play for Liverpool.
“I am happy with the progress I’ve made so far and hopefully I can progress more in the second half of the season and continue to keep playing.
“There’s still so much hard work ahead. There is big competition within the team and everyone wants to play football. I just hope I can keep progressing and continue in the way I have been.”
This season has been a breakthrough campaign for Wisdom, with the powerful defender establishing himself in the first-team set-up under Brendan Rodgers.
The No. 47 marked his senior debut with a goal against Young Boys in September and has since made a further 13 appearances for Liverpool.
“It’s fantastic news,” Managing director Ian Ayre said. “It’s another great example of a player committing to the club and what we’re trying to achieve under Brendan.
“He’s a great young player, shown a fantastic improvement, broken into the first team and made a huge contribution — and rightly so, we’ve provided him with a new contract and a long term one.
“Getting talent like him, Raheem and others to commit at this point is absolutely essential to the future. The manager, the owners and everyone have said the key is to build something for the long term — and young players are a catalyst to that. None more so than Andre.
“He’s come on leaps and bounds in the last year or so and that’s because of all the hard work he’s put in and the manager giving him a chance, so it’s absolutely essential players like that commit themselves to the club.”
Wisdom follows the likes of Luis Suarez, Martin Skrtel, Daniel Agger, Suso, Raheem Sterling, Brad Jones and Jonjo Shelvey in committing his future to the club since the summer.