Marko Grujic has agreed a five-year contract with Liverpool ahead of completing his £5million move from Red Star Belgrade.

The highly-rated Serbia Under-21s midfielder is expected to fly to Merseyside this week to undergo a medical.

Liverpool will pay Red Star 7million euros (£5million) to secure his services. However, under the terms of the deal, the Reds will receive 1million euros (£730,000) back as a loan fee after agreeing to let him remain in his homeland until the end of the season.

Red Star have also negotiated a 10% sell-on clause.

Liverpool chief executive Ian Ayre flew out to Belgrade last week to complete what is the first signing of Jurgen Klopp's Anfield reign.

Initially, Liverpool feared they would miss out to Inter Milan in the battle for the 19-year-old's signature.

However, Klopp spoke to Grujic personally in order to spell out why he wanted him at Anfield and that swung the deal the Reds' way.

Grujic came up through the ranks at Red Star's youth academy and made his first-team debut at the age of 17 in May 2013.

He has since gone on to become a firm fans' favourite and has helped Red Star build a commanding lead at the top of the table this season.

Grujic, who has scored five goals for Red Star so far this term, was part of the Serbia squad who won the FIFA Under-20 World Cup in New Zealand back in June.

Source: Liverpool Echo