Mahmoud Dahoud’s agent has insisted the Liverpool target will not leave Borussia Mönchengladbach this summer and denied reports that the 20-year-old could be available for a cut-price fee of just £8.5m at the end of next season.

Dahoud, who was born in Syria, has been tracked by Jürgen Klopp’s club after an impressive season in which the Germany Under-21 midfielder made 32 Bundesliga appearances. Liverpool were informed last month that Gladbach have no intention of allowing him to leave after they sold fellow midfielder Granit Xhaka to Arsenal, with a number of other clubs believed to be interested.

It is understood that the German club rejected an offer of €40m (£34.2m) from Paris Saint-Germain earlier this month while an unnamed English team who will play in this season’s Champions League has also seen a bid rejected. Dahoud, whose contract expires in 2018, has been offered a new deal but is refusing to sign on the understanding that he will be allowed to leave next summer.

Having qualified for the Champions League themselves, Gladbach are willing to accept they will lose a significant chunk of his potential transfer value by not sanctioning his sale. But despite reports in Germany on Wednesday, Dahoud’s agent, Reza Fazeli, told the Guardian that there is no release fee agreed with the club.

“It is certain Mahmoud will stay with Gladbach for now,” he said. “There has been a lot of interest in him, not just from Liverpool. But we have an agreement with Gladbach and everything has been postponed for next season.

“We will have to wait and see what happens in the future but it will be up to the club to accept a fee they think is acceptable.”

Dahoud, who was only 10 months old when his family fled the largely Kurdish town of Amuda on Syria’s northern border with Turkey, has represented Germany at various youth levels and came close to being selected for Joachim Löw’s Euro 2016 squad. He scored five goals and registered nine assists last season and ran an average of 13kilometres a match, the second highest in the Bundesliga.