Salah was the star of the show for Liverpool last season, scoring 44 goals in 52 appearances, on the way to the Champions League final.
Salah picked up both the PFA Players’ Player of the Year and the Football Writers’ Association’s Footballer of the Year after a stunning campaign.
And Salah has today penned a new five-year deal worth £200,000 a week with Liverpool which does NOT include a release clause.
Klopp thinks it shows that Liverpool are going in the right direction and shows how much the club have grown.
He said: “I think this news can be seen for what it is; rewarding a person who performed and contributed greatly for the team and the club last season.
“It demonstrates two things very clearly also – his belief in Liverpool and our belief in him.
“We want world-class talent to see they have a home at Anfield where they can fulfil all their professional dreams and ambitions – we are working hard together to achieve this.”
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Salah, 26, joined Liverpool from Roma in a surprise £34m deal last summer, having struggled at Chelsea before moving to Italy.
But he turned into the best signing of the summer, inspiring Liverpool in pursuit of European glory.
Ultimately Liverpool lost to Madrid in Kiev, but only after Salah had been forced off with a shoulder injury after a collision with Sergio Ramos.
And Klopp thinks Salah signing a new deal, after links with Barcelona and Real Madrid, sends a message to the football world.
“When someone like Mo Salah commits and says this place is my home now, it speaks very loudly I think,” the German added.
“Equally, our commitment to him says we see his value and want him to grow even more and get even better within our environment.
“The key thing to remember is the best thing about Mo is that he never sees himself as being more important than the team or anyone else within it. He recognises his teammates and this club helped him achieve individual success last season. He sees the individual awards come because he is part of something bigger that is special.
“Mo reflects where we are as a team, I think. Last season was special with many special moments – but we want more.
“We want to be more successful and achieve more together – as the supporters sang so loudly, ‘we’re never gonna stop’. This has to be the attitude individually and collectively.”
Salah went to the World Cup still injured and missed Egypt’s first game against Uruguay before playing in the defeat to Russia.
He also played in the Saudi Arabia defeat but never looked fully fit. He will return to Melwood for pre-season training after a holiday in preparation for next season, which kicks off on August 11 against West Ham.