By North-west correspondent Alex Stevens

Liverpool have clinched the first major signing of the Jurgen Klopp era, Football Insider sources understand.

The Merseysiders have finalised a deal with Red Star Belgrade for central midfielder Marko Grujic to join in a £5million deal.

A Liverpool source has told Football Insider that chief executive Ian Ayre agreed the terms of the signing of the 19-year-old at the end of last week.

The Serbia Under-21 international will sign on a permanent deal, be loaned back to Red Star for the rest of the season and then move permanently to Merseyside next summer.

Grujic is regarded as one of the most promising young talents in European football and has been targeted by a number of elite clubs including Chelsea, Manchester United and Inter Milan.

Cash-strapped Serbian Super League leaders Red Star are resigned to selling the 6ft 3in midfielder, who has scored a creditable five goals in 21 league matches this season.

Hot pursuit: Liverpool are closing in on their first signing of the Klopp era

Hot pursuit: Liverpool are closing in on their first signing of the Klopp era

Asked about his future recently, Grujic said: “I’ll try to respect the club, the fans and the general public, but again I think that for myself I have to choose the best environment where I get the chance to play and where I work with good coaches in good conditions.

“It is certain that I remain here until the end of qualifying for the Champions League. I had a talk with Liverpool but I did not receive yet any agreement. I’m still a Red Star player.”