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The Egyptian's contract will see him earn £350,000-a-week, making him one of the highest earners in Premier League history.
There was heavy speculation this summer that the forward was looking for a way out of Liverpool, but the 30-year-old will now stay at the club until 2025.
Shearer believes that the new deal will lift a weight off his shoulders. Speaking to the BBC, the pundit stated:
“A big reason for that is Mohamed Salah signing a new contract, which is absolutely huge for them and will be a big weight off his mind too,”
“We might even see Salah playing better now, which is a frightening prospect for Premier League defences.”
The 30-year-old has spent 5 years at Anfield and in that time he's scored an impressive 157 goals in 255 games.
The Egyptian has been ever present in Liverpool’s recent successes and was a key part of their Premier League and Champions League winning campaigns.
Nunez joined from Benfica for a club record fee of up to £85M.
Both players are expected to be in action this weekend in the Red's opening Premier League game against Fulham.
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