Milner signs new one-year Liverpool contract on reduced terms

James Milner has signed a new one-year contract extension at Liverpool until the summer of 2023.

The 36-year-old's previous deal was due to expire at the end of this month and the midfielder had external offers from one Premier League club and two from overseas.

Sky Sports News understands Milner has accepted a reduced wage packet to sign a new contract that will take his time at Anfield to eight seasons.

"I'm very pleased to be staying for another season," Milner told the Liverpool official website. "I have never taken playing for this club for granted and I never will.

"An overriding feeling for me - and a vitally important one in the process - was the belief I can still contribute to the team. The gaffer was clear what he thought and that was a big factor in me extending my contract.

"As long as I can still play my part, that's not something easy to walk away from. Last season was extraordinary, even though it didn't have the ending we hoped it would. But I think that will only make us all even hungrier for more success, to be honest. I felt that after the parade and that played a part in my decision-making also. It's a unique club.

"Now this is signed, I'm already looking forward to getting back with everyone, refocusing and going again. It's a brilliant dressing room to be part of."

The deal was very much driven by Liverpool manager Jurgen Klopp, who was not prepared to lose a player who made 39 appearances for the team last season.

Milner was offered the new contract before the end of the campaign just finished but decided to wait until the end of the season before deciding on his future.

The new contract also means Milner is likely to surpass 300 appearances for Liverpool next season, with the veteran midfielder