The 30-year-old centre-back is in her second spell with the Reds after re-signing in 2021 following two seasons with Bristol City.
She helped Matt Beard's side earn promotion by winning the FA Women's Championship in 2021-22, before making 18 league starts on their return to the Barclays Women's Super League last season.
Normally deployed as a left-sided centre-back, Matthews can also play as a defensive midfielder, offering versatility as well as her renowned dependability.
"I'm extremely happy. When Matt spoke to me, it was a no-brainer to extend my deal here," she told Liverpoolfc.com shortly after putting pen to paper.
"I really like it here, we're really settled. Everyone is so friendly and welcoming. We're all friends, we all get on so well. I think Matt has to take a lot of credit for that – the people he brings in are just good people.
"Sometimes, yes, you need talent but if you have good people around, that speaks volumes as well. That goes for the backroom staff as well."
Six new signings have arrived at LFC Women this summer and Matthews is looking forward to playing alongside them, as well as appearing in front of the fans once again.
She continued: "If you look at the signings we've made, they're young but they're talented players. I've been watching training and the ball is moving at such pace.
"I'm really excited to see where we go. For me, I want to play as much as possible, stay fit and help the team do well.
"It's a special feeling here at Liverpool with the fans. Some games were tough last year and they just really push you and get you over that line."
Beard is delighted to have one of his defensive stalwarts committing her future to the club.
The Reds boss commented: "Jas is our Rolls Royce. She's a gifted footballer. She's got a wonderful left foot and gets herself out of many situations you wouldn't expect! She's a great person, she's a great defender and with the ball at her feet she's excellent.
"She's now one of our key experienced players as well and we're looking forward to two more years of Jas Matthews."