The 23-year-old, who returned from a cruciate ligament injury in February, has made 75 appearances for the Reds since her debut in 2014.

"This is the only place I've been in my career and I'm delighted to stay," she told the club website.

"I feel next season is a big season for me and I hope I can push on to be the best I can be."

Liverpool have not disclosed the length of Hodson's new deal.