Liverpool boss Jurgen Klopp sees Marko Grujic as a long-term first team prospect.
Grujic has signed a new contract ahead joining Hertha Berlin on-loan for the season.
The Liverpool Echo says Klopp views Grujic as first-team material for Liverpool next season and wanted to ensure he went somewhere that would enable him to mount a serious challenge for a starting role when he returns.
For both Liverpool and Grujic, it was about securing a commitment to play centre midfield. That was why Crystal Palace was never regarded as a serious option as Roy Hodgson viewed him as back up rather than a regular starter.
The Reds rejected an offer from Torino last week after the Serie A outfit wanted a season-long loan with the option to buy him for 10million Euros next summer (£9million).