Both are young players, and the move suggests that Liverpool value them as promising prospects for the future.
Ibe, 19, has established himself as an important player in Brendan Rodgers’s side since he was recalled from his loan spell at Championship outfit Derby County in January.
The England Under-20 international has created four chances in 11 Premier League appearances for the Merseyside outfit, while having a pass accuracy of 88% and a shot accuracy of 44%.
Meanwhile, 22-year-old full-back Flanagan has been out for the entire 2014-15 campaign due to injuries.
The youngster was an important player for Liverpool in the second half of last season, when the Reds were challenging for the Premier League title.
The England international scored one goal and created 13 chances in 23 league appearances in the 2013-14 campaign, while having a pass accuracy of 83% and a shot accuracy of 50%. Flanagan won 28 headers, 15 dribbles and 59 tackles in those games.
Following the announcement of the new deals on Thursday, Liverpool fans took to Twitter to have their say.
Below are the best reactions:
@LFC Ibe's a poor mans Sterling and Flanagan's a poor mans Johnson, smh— Joey Drinkhall (@JoeDrinkhall) May 21, 2015
@LFC if you're paying them more than you pay Sterling you are absolute heroes— Simon (@Simonnnnn19) May 21, 2015
Sterling should of followed the examples of Ibe and Flanno, shows the big difference and what actually matters! #LFC— Jarrod kurpiel (@Jarrodkurpiel) May 22, 2015
Good news to start the day, Jordon Ibe and Jon Flannagan signed their new contracts woohoo #lfc— mia fiona (@opheliamorada) May 22, 2015