The vice-captain has agreed to a one-year deal that will keep him at the club.
He left Manchester City on a free transfer to join the Reds.
He has won six major trophy for the Reds, including the League Cup.
It is believed that Milner has accepted a contract that will keep him at the club.
Milner is happy to be staying for another season.
I never will take playing for this club for granted.
At the end of the month, he would have been out of contract, but he chose to stay with the Reds and sign a new deal that will keep him there until the summer of 2023.
He did not want to lose his influence in the squad and his ability to play multiple positions on the pitch.
He has played in both full-back positions as well as his preferred position in the middle.
It was the belief that I can still contribute to the team that made me feel good. The decision to extend my contract was based on the clarity of what the boss thought.
His career in the English top flight will be extended for two decades after he signed a new contract.
Despite not being a regular starter in key games, he made 24 appearances for the Reds last season as they narrowly missed out on the title.
The FA Cup and Carabao Cup were both won by the Reds but they missed out on the chance to play in the European Championship.
He said that last season was extraordinary even though it didn't end the way he wanted it to.