The 19-year-old has become an established member of Brendan Rodgers’ first-team squad this season after impressing on his debut in September.
"It was an easy decision to make - as soon as they offered it to me, I grabbed the opportunity with both hands because it's a great club and I just want to continue to play for Liverpool," Wisdom said.
"I am happy with the progress I've made so far and hopefully I can progress more in the second half of the season and continue to keep playing.
"There's still so much hard work ahead. There is big competition within the team and everyone wants to play football. I just hope I can keep progressing and continue in the way I have been."