Liverpool have signed Neil Mellor on a new deal which will keep the young striker at the club until 2006.
Mellor made his Liverpool debut at the end of 2002
Mellor's previous deal was due to expire at the end of the 2003/04 season.
But manager Gerard Houllier decided to act after Mellor impressed when given the chance to play for the first team.
Mellor, 20, told Liverpool's official website that he was delighted to put pen to paper.
"The manager came to me about a month ago and said he was pleased with the way I had been progressing and also said that the club wanted to offer me a new contract," he said.
"I had no hesitation at all in accepting because this is the place I want to be.
"I want to be working with world-class players in the best possible environment, and I certainly have that here.
I couldn't wish to be at a better club than Liverpool
"I'm in my fourth year at the club now, and with this new three-year deal it means I will be here for at least seven years.
"For any player to stay at this club for that long is a decent achievement and it tells me I must be doing something right."
Mellor admitted that he faces a tough battle to become a Liverpool regular.
"There a lot of great players here and I am going to have to work extremely hard and keep improving if I am going to compete with them for a place in the team," he said.
"I just want to give myself the best chance of having a good career and I couldn't wish to be at a better club than Liverpool."