According to the club's press service, the agreement with the 31-year-old Croat is for three years.
Lovren has played for Liverpool since 2014. He has 185 appearances for the Merseysides, in which he scored eight goals and gave five assists. As part of Liverpool, he became the Premier League champion, winner of the Champions League, UEFA Super Cup and World Club Championship.
Earlier it was reported that Branislav Ivanovic will continue his career at Everton.