The 19-year-old has been in talks over his future with the club for several months and a breakthrough s reportedly close as per The Athletic.
All parties are keen to continue together, and Liverpool are ready to reward the young midfielder with fresh terms, to reflected his updated role in Andoni Iraola's plans.
A £30M transfer bid from Nottingham Forest was rejected over the summer as Iraola stated the England U21 international would be a big part of his squad.
The former Leicester City man has made 12 appearances in all competitions, including a first Premier League start against Arsenal as Mikel Arteta's side claimed a 1-0 Anfield win, followed by a first UEFA Champions League start at Fenerbahce.
Iraola is confident he can play a regular role moving forward, and despite signing a “multi-year” deal in June 2025, when he turned 18, the exact length of that agreement was not disclosed.
The new contract should be until at least 2030 as Iraola places his faith in the teenager.