Liverpool are making progress in contract talks with talented young midfielder Trey Nyoni, according to a trusted source, in news that will further frustrate Alexis Mac Allister.

In September, Mac Allister said he was ‘very sad’ not to have been offered fresh terms by Liverpool. The Argentine midfielder had seen team-mates Dominik Szoboszlai and Ryan Gravenberch pen new long-term deals.

Mac Allister’s current contract at Anfield runs until June 2028, and he feels he has done enough to earn an extension.

But Liverpool are yet to open discussions over such a deal. They are wary of handing the 27-year-old a long-term contract given how his form dropped significantly last season.

Plus, selling Mac Allister could give Liverpool the funds to revamp their midfield, as he has previously been linked with clubs such as Manchester City and Real Madrid.

The Athletic’s Gregg Evans has revealed that Liverpool are in ‘advanced talks’ to hand Nyoni a new contract, having seemingly snubbed Mac Allister once again.

Liverpool are hopeful there will soon be a ‘breakthrough’ with Nyoni and they will be able to reach a full agreement.

The Reds aim to hand Nyoni a new long-term deal that includes a pay rise to reward his growing importance to Andoni Iraola.

The 19-year-old started in the 1-0 defeat to Arsenal on Sunday, which shows how much Iraola trusts him.

Last week, fellow starlet Rio Ngumoha praised Nyoni by saying: “Trey is top. You guys haven’t even seen him at his very best yet. He definitely has another level to go and he’s only 19.

“The sky is the limit for Trey. I’m really happy he’s getting the minutes to show himself, but also everyone else, how good he is.”

Liverpool rejected a £30million bid from Nottingham Forest for Nyoni in the summer, and that has proven to be a great decision.

Ahead of Liverpool’s clash against Fenerbahce, Mac Allister was once again quizzed about his future.

Mac Allister gunning for new Liverpool contract

“I still have time left at this club, which is what I want most, to continue here,” he replied.

“The reality is that the manager and sporting director has changed, and new investors are coming into the club.

“So I think today I am in a position where anything can happen, and well, we will see in the future. I am happy here.”

Liverpool must soon make a final decision on whether to extend Mac Allister’s terms or bring in a new midfielder.

They are big admirers of Alex Scott, whom Iraola coached at Bournemouth, but we understand Chelsea are leading the race for him.

Instead, Liverpool have completed the ‘groundwork’ on a potential deal for Monaco’s Lamine Camara.