The talented 19 year old has been sensational this season, replacing Lewis Holtby and showcasing his creative potential going forward.
He had been linked with Arsenal and Borussia Dortmund, possibly as a replacement for Mario Gotze with the latter.
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.