The 24-year-old helped Liverpool win the Women's Championship after joining the club in January 2021, as the Reds secured an immediate return to the top-flight WSL.
Liverpool are offering free tickets to Anfield for victims of Champions League Final chaos
Holland's form at Liverpool saw her called up by the Wales National Team and she has won 13 matches since making her debut in April 2021.
"When the option of extending my stay here was put on the table, it was an absolute no-brainer," Holland said.
"I'm absolutely made up. I can't wait to start the new season."
"Ceri came on in leaps and bounds last year. Tactically she was challenged at the start of the season and came out on top," he said.
"In her national team she's played fullback, she's played on the wing. For us, [she has played] predominantly as a holding midfielder or attacking midfielder. She's very versatile and can cover numerous positions for us.”
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