By North-west correspondent Alex Stevens

Follow us on Twitter @footyinsider247

Jon Flanagan has agreed the terms of a Liverpool contract worth £5.2million, Football Insider sources understand.

The 23-year-old full-back has signed a three-year deal worth £25,000-a-week that runs until 2019, with the option of a fourth year, after reaching an agreement with the club.

Liverpool announced on Friday that Flanagan had put pen to paper on a “long-term deal” that ties him to his boyhood club.

Flanagan’s current deal had been due to expire at the end of this season but he has recovered from an 18-month injury lay-off and convinced manager Jurgen Klopp he should be part of his plans.

Subscribe to Football Insider TV now

“We are especially happy for Flanno,” said Klopp, who confirmed the defender was set to put pen to paper at his media briefing on Friday. “He had a difficult injury. He is our boy.

“I was a little bit involved in these negotiations. There’s a lot of other full-backs in the world, but not so many scousers.”

Academy graduate Flanagan was part of the side that went close to the title under Brendan Rodgers two years ago, but he then suffered with knee problems that threatened to wreck his career.

Liverpool opted for a year extension last summer as he continued his rehabilitation, but at his lowest ebb there were genuine concerns he would not return to level needed to return to the first team and his contract situation was causing alarm.

The arrival of Klopp meant Flanagan had to prove himself again knowing time was not on his side and the manager sanctioned a contract extension based on the player’s performances since his comeback game in the FA Cup third round earlier this season.

The full-back is one of the few home-grown players at Anfield who has made an impact in the senior side in recent years, which added to the desire to ensure he remained at the club.

In other Liverpool news, the compensation figure the club must pay for Danny Ings is set to be “the biggest in history”.