Henderson joined the Reds in the summer of 2011 and took time to settle at Anfield.
However, the last year has seen him flourish under Brendan Rodgers, and he has been a Premier League ever present this season.
The 23-year-old’s fine form this campaign is set to see him rewarded with an improved deal, despite coming close to leaving the club only 18 months ago.
Henderson’s current contract has two years left to run, but the club’s hierarchy are keen to reward him for his massive improvement.
The midfielder has been mentioned as a candidate for Roy Hodgson’s World Cup squad, so the Reds will likely look to tie up the deal after the summer’s tournament.
Liverpool have made a habit of tying their best players to new deals recently.
Luis Suarez signed a new four-and-a-half year deal shortly before Christmas, while captain Steven Gerrard penned a two-year-extension in the summer.