Former England international Danny Mills says Jurgen Klopp's new deal at Liverpool is a 'big boost' for everyone concerned at the club.

The Lowdown: Klopp signs new deal

Last week, Klopp signed a two-year extension at Anfield, meaning he will now remain as manager until the summer of 2026.

It was a significant moment in Liverpool's recent future, with the German completely transforming Liverpool since taking charge back in October 2015.

Not only has he won the Champions League and Premier League, among other trophies, but he also has turned the Reds into arguably the world's best club side, currently neck and neck with an incredible Manchester City squad to decide who deserves that title.

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The Latest: Mills reacts positively

Speaking to Football Insider, Mills, a BBC Radio 5 Live pundit, was unsurprisingly positive about the news, saying it should only improve the current feel-good mood at Anfield:

"The timing is probably aimed at giving the whole squad a big boost. I’m guessing these talks have been going on for four or five months. This is not something that comes about a few days before when they ask ‘Jurgen will you sign a new contract?’ And he says ‘Oh, go on then’ and it’s done and dusted.

"When you’ve got a little bit of speculation around other players’ contracts, Mane and Salah, to announce Klopp’s contract and to say ‘He’s the man’, it gives everyone a bit of comfort.

"For those players, they think ‘Oh he’s going to be here, we can plan’ and if they are not going to be there then there is still a plan and it settles down the fans.

"Why wouldn’t you sign him up? He’s an exceptional manager. But remember, managers can be sacked. It only takes two disastrous seasons and he will be out. Simple as that.

"I don’t envisage that happening in any way shape or form but it’s much easier to tie down a manager because you can always get rid of them with six months or a year’s pay-off."

The Verdict: Best news of the season

For all the talk of Mohamed Salah and Sadio Mane's futures and potential new signings, Klopp staying on for a further two years is more important than anything else.

The 54-year-old holds the key to Liverpool's success and he is already a truly legendary figure at the club, masterminding a glorious period in the Reds' history and making legends out of his players.

In an ideal world, Klopp would stay on well beyond 2026 but to have him for an extra couple of years is huge in itself - the fact that rival clubs will likely be upset by the news sums up his brilliance.

In other news, a journalist has dropped a huge £80million Liverpool claim. Read more here.