With the likes of Manchester United, Manchester City, and Fulham in the hunt for the youngster, Liverpool have managed to sign the player for an undisclosed fee.
The player will join up with the Liverpool Academy.
Managing Director Christian Purslow told Liverpool's official wesbite: "The success of our Academy is vital to the future progress of the club and we have made clear that we will invest in outstanding young talent.
"Raheem is a very exciting young English player whose progress was being closely monitored by many other leading clubs and I'm delighted he's joining us.
"Frank McParland and his staff have done a great job in bringing him to Liverpool."