The new deal will keep the 28-year-old at the club until the summer of 2012.
Liverpool boss Rafael Benitez was delighted to see both Kuyt and Gerrard sign new deals today.
“This is another great piece of news for the club,” Benitez told the club’s official website.
“Dirk had one year left on his contract and we were keen for him to stay. He is a player with great quality who has a big part to play in our future. We are delighted to have reached an agreement.
“To have announced new deals for Steven and Dirk on the same day shows how hard everyone is working and that we are moving forward quickly as a club.
“These are very positive messages and I am very happy.”