Liverpool face a battle to sign Mahmoud Dahoud from Borussia Mönchengladbach, with the German club determined to resist any offers for the Germany Under-21 midfielder.

Dahoud, who was born in Syria, has been tracked by Jürgen Klopp’s club after an impressive season in which the 20-year-old made 32 Bundesliga appearances in midfield. He has attracted widespread interest around Europe, with Klopp’s former club Borussia Dortmund also interested in signing him.

However, it is understood that despite Liverpool’s willingness to offer up to €30m (£25m), Dahoud has been informed he will not be allowed to leave Gladbach following the sale of fellow midfielder Granit Xhaka to Arsenal. A source close to the player told the Guardian that he is happy to continue his development at Gladbach “for another season”, with his contract due to expire in 2018.

That could mean any potential suitors are able to purchase him for less, although Gladbach are understood to be preparing to offer him a new deal.

Dahoud, who was only 10 months old when his family fled the largely Kurdish town of Amuda on Syria’s northern border with Turkey, was considered as a potential member of Joachim Löw’s Euro 2016 squad and has represented Germany at various youth levels.