Richmond coaches have put Baker's versatility to good use this season as he proves his worth across three lines of the ground, with the club reportedly valuing his services in the vicinity of $1.2 million across the next two seasons.
Baker's hearty character and tenacious footballing spirit has seen him become a crucial member of the Tiger's squad, while he has developed as a club leader in 2022.
His re-signing will be welcome news for the Tiger army after he fended off interest from clubs in his native state of Western Australia.
It is understood an increased offer of close to $600,000 has kept the gun Tiger at Punt Road, according to The Herald Sun.
Blair Hartley, Richmond's general manager of football talent, said Baker's extension would ensure the continuation his excellent contribution to the club.
"Liam is an important player for us both on and off the field," Hartley said in a club statement on Thursday.
New deal fresh out of the oven 😍✍️
— Richmond FC 🐯 (@Richmond_FC) July 27, 2022
"He is very popular among players, staff, and coaches, an excellent contributor to our culture, and an important part of our future.
"Liam has worked extremely hard since coming to the Club as a rookie selection from Western Australia and has been rewarded with individual and team success.
"We look forward to watching Liam continue to grow as a footballer, leader, and person across the next two years and beyond."
Since debuting in Round 19 of the 2018 season, Baker has gone on to amass 82 games so far in his career.
He cemented his spot in the side after becoming a 2019 premiership player in just his 22nd league game.
In 2020, Baker was rewarded with a sixth-placed finish in the club's best and fairest medal.
He then backed that up the following season, finishing as runner-up to Dylan Grimes in the 2021 best and fairest.