The Mali midfielder, 22, had been linked with a summer move away from Anfield but has joined captain Steven Gerrard, Jamie Carragher, Xabi Alonso and Jose Reina in penning a long-term deal.

After signing the paperwork that will tie him to the club until 2011, Sissoko told the club's official website, "It was never in my thoughts to leave Liverpool.

"I read about the speculation linking me with other clubs but I am already at a big big club and it's an honour for me to be able to call myself a Liverpool player."

Sissoko, who joined Liverpool from Valencia in the summer of 2005, has been arguably the club's most improved player under manager Rafael Benitez.

He has suffered more than one serious injury while at Anfield, and lost his place as midfield anchorman following the arrival of Javier Mascherano during the second half of last season.

But Sissoko has vowed to battle for his place, saying: "I feel fresh and can't wait for the new season to start.

"I am injury-free and although I know I'll face a battle for a place in the team as we have so many great midfielders I'm prepared to fight for a position.

"It obviously gave me a huge boost to my confidence that the manager believes in me and wanted me to stay at the club. Now I want to repay him on the pitch."

Sissoko's commitment comes on the same day Liverpool captured their second top European teenager inside 48 hours as Benitez's summer spending gathers pace.

Just a day after Levski Sofia announced Bulgarian international goalkeeper Nikolay Mihaylov would be joining the Reds on a three-year deal, Athletic Bilbao confirmed that young defender Mikel San Jose was also bound for Anfield.

While Benitez and Liverpool are still locked in talks over their plans to sign Atletico Madrid striker Fernando Torres, it is also clear the Spaniard remains committed to bolster the younger players at the club.

San Jose, 18, will move for a fee of around £270,000. Bilbao were aiming to use the youngster in their second team next season, but a club statement said: "For us, it is bad news, but Mikel has decided on the choice of Liverpool and it was impossible for us to fight against a European giant."

San Jose added: "It was a surprise for me but I have decided to accept the chance at Liverpool.

"I am very excited but now I know that I have to work more each day to get in the first team."

The arrival of Mihaylov will put pressure on England squad man Scott Carson, who has been told he will be Reina's number two next season and will not be allowed out on loan again.

Mihaylov is the son of Bulgarian soccer federation chairman Borislav Mihaylov - the former Reading keeper - and celebrated his 19th birthday today.

He has been a regular in Bulgaria's Under-21 side and has made one full international appearance. He already has Champions League experience, playing for Levski Sofia against Werder Bremen last season.

Although Benitez's only other top-line signing so far this season is Bayer Leverkusen striker Andriy Voronin on a free transfer, two young Hungarians also started training with the club today.

Krisztian Nemeth and Andras Simon, are looking to make a big impression at Anfield, and hope for first-team action within two seasons.

The teenagers were signed from MTK Budapest and 18-year-old Nemeth said: "We hope that in a year or two we can make our debut in the first team.

"I'm very happy with this, I think this is great news for our whole country. It's a big honour."

Simon, 17, added: "We want to play regular football in the reserves. We will do our best to step forward as soon as it's possible."