The winger, who celebrated his 18th birthday on Sunday, had a year remaining on his contract, but after playing a key role in their FA Youth Cup win last season and the first team's current pre-season campaign, has been rewarded with a further 3 years on his contract. It now runs until 2010. He's yet to make his debut for the Liverpool first team in a competitive fixture, but has been an un-used substitute on one occassion.
Anderson didn't ever make it into Hull City's first team before being snapped up by the Premiership side. The Leicester-born player, who'd joined City from West Brom, went to Anfield in exchange for midfielder John Welsh. City will also receive £75,000 when Anderson makes his Liverpool debut, and £1.5m if he plays 30 games. City will also get a 25% cut if they sell the player.