Liverpool have agreed a deal to sign former Manchester City youngster Diego Lattie, a source close to the Merseyside club has told ESPN FC.

Lattie, who came through the ranks at Manchester City after joining the club at the age of nine, was recently released after being told he would not be offered a new deal at the Etihad Stadium this summer.

The news of his release alerted a number of Premier League club's to Lattie's availability, and a source told ESPN FC that Liverpool have reached an agreement the for the right-back.

The England under-17 international has agreed a three-year deal at Liverpool and will link up with the club's U18 side next season.

Liverpool will not have to pay City any compensation for 16-year-old Lattie as he was released from his contract.