Liverpool have signed promising 16-year-old midfielder Dan Smith from Crewe Alexandra.

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The Railwaymen were reluctant to sell Smith, but finally agreed a £300,000 fee with the Reds after a similar deal with Manchester City fell through.

"We are naturally disappointed that Dan has decided to sign for Liverpool," said Crewe Alexandra spokesman Rob Wilson.

“The club has received an undisclosed fee and future add-ons but we would have much preferred to have seen him play for our first team.”