Red Star Belgrade teenage prodigy Marko Grujic will sign for Liverpool after the deal was confirmed by Red Star sporting director Zvezdan Terzic.

Liverpool will play Red Star £5million, with the 19-year-old being loaned straight back to the Serbian outfit.

Terzic said the deal would be wrapped up in the coming days.

"[Liverpool] will pay €7m for him and Red Star will get 10 per cent of the transfer fee if Liverpool sell him in the future," Terzic said.

"Marko will sign a five-year deal worth €1.2m per season at Liverpool and will get Steven Gerrard's number eight jersey."

Grujic has made 21 senior appearances for Belgrade this season, scoring five goals and the highly-rated, 192cm midfield prospect was also part of the Serbia team which took out the FIFA under-20 World Cup in New Zealand this year.