Jordon Ibe has agreed a new contract committing him to staying at Liverpool until 2020.
The 19-year-old winger will sign the deal next week, sources have told ESPN FC.
Ibe, who secured a move to Anfield from League Two side Wycombe in December 2011, has become a key part of Liverpool's first-team squad in recent months.
He has featured regularly for Brendan Rodgers' side since being recalled early from a season's loan at Championship club Derby in January.
Liverpool have been in discussions for several weeks to extend the teenager's contract, and have been confident throughout that it would be sorted out.
That was despite a report in the Sun on Tuesday that Ibe was refusing to sign the deal he had been offered. It is understood, though, that talks have gone smoothly.
Ibe revealed in an interview with British newspapers last Sunday that he did not have an agent, and that negotiations were being handled by his mother and stepfather.
He said then: "Liverpool want me to stay here and my mum and stepdad are sorting that out with the club.
"So hopefully everything will just get sorted by the end of the season because this is where I want to be.
"I don't need an agent. I just think my parents can do the job. For me they are the best people to look after me and my future.
"I've never seen the need to have an agent. My concern was just playing football and if I needed help deciding contracts off the pitch, then I would always go to my parents.
"My family will always be number one to me because I trust them. It's not that I've had a bad experience with agents. But I don't see what they can do that my parents can't do either."