The 19 year-old fullback has penned a deal to 2030.
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Liberto extends by three years the previous contract that bound him to Real Madrid until 2027, a deal he agreed to almost two years ago.
The left-sided defender is described as a modern day fullback - "fast, with excellent dribbling skills down the left flank and the ability to play as a winger when the game demands it".
Liberto belongs to the generation of Thiago Pitarch, Carlos Díez, and Gabri Valero at Real Madrid.
The defender joined Real Madrid as a 10 year-old from Rayp Vallecano.