The 18-year-old midfielder has signalled his intent to remain at Portman Road for the time being.
The Mirror reported mid way through January that Liverpool were 'winning the race' for the player who was being touted as worth a fee in the £10 million department.
Liverpool boss Brendan Rodgers is known to be a fan of bringing through young British talent and Bishop would have certainly fitted the bill in that respect.
Would have, because of course Bishop stayed at Ipswich in the winter and now he has committed his future to the club.
On the same day that Ipswich Town announced the loan signing of Luke Varney they also announced that Bishop had signed a contract extension at the club, keeping him at Portman Road until 2018 with the option of an extension at the end of that deal.
After the signature was complete Ipswich boss Mick McCarthy waxed lyrical about the player to the official Ipswich website, admitting he knew he would end up in the Premier League - hopefully with Ipswich and not Liverpool:
“He is going to play in the Premier League, no doubt about that. Let’s hope it’s with us. He wants it to be with us and hopefully it will be next year. We’ve still got a chance.
“Whatever happens, he will play there because he’s that good. This is no false dawn. I’m not looking through rose-tinted glasses. He can be top class."
Bishop himself then spoke abut his delight over signing the deal:
"I'm delighted to get the new contract and I'm glad to have got everything signed.
"The season has gone really well so far- for both me and Ipswich- and hopefully we can keep pushing on."
It is a great move for Ipswich, even if it will taste sour for Liverpool fans, who currently sit fourth in the Championship and are pushing for promotion - with Bishop an integral part of that team.