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Smith confirmed the deal on Twitter this morning (Wednesday).
Happy to have signed a new contract at liverpool @LFC 🔴
— brad smith (@bradsmith_94) November 17, 2015The 21-year-old from the west of Sydney has made one appearance in the EPL back in 2013 in a 2-1 away loss against Chelsea at Stamford Bridge.
Smith had a loan spell at Swindon Town - where he was team-mates with Massimo Luongo – back in 2014 before he was recalled to the Reds by midway through last season.
He will now be hoping to impress new manager Jurgen Klopp enough to try and break into the first team.
Klopp has an excellent track record at bringing youth players through which augurs well for Smith who'll be hoping for game time to boost his fledgling career in the national team.