Liverpool are looking to agree a new contract with Rio Ngumoha, despite interest in the 18-year-old winger from Arsenal and other European clubs.
According to journalist Dean Jones, the Reds are determined to act decisively and have already taken the initial steps towards extending the player's deal.
The club has held preliminary discussions to gauge what Ngumoha wants from a new contract and how Liverpool envision his further development.
Jones reports that the club's priority is to try and conclude negotiations within the next month.
Liverpool are keen to secure the future of one of their most promising young talents, especially with Arsenal showing interest.
Daily Mail journalist Lewis Steele notes that Ngumoha is aware of the interest from other clubs. In addition to Arsenal, Bayern Munich is also keeping tabs on the situation.
However, Steele reveals that the player is happy with his time at Liverpool.
Ngumoha signed a three-year professional contract with the club on September 25 last year, which was the maximum length allowed for a player of his age.
Steele also mentions that Liverpool have a set salary cap for young players. Thus, any potential improvements to Ngumoha's terms might involve not only a fixed salary but also a bonus system.