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Transfer news: Liverpool target Ferran Torres gets €100m buy-out clause in new Valencia contract

Liverpool and Real Madrid target Ferran Torres has signed a new contract with Valencia.

The 18-year-old has broken into the first team this season and his form has caught the eye of several clubs.

Most notably, Liverpool and Real Madrid have shown an interest in the winger ahead of the summer transfer window.

The Reds are said to be 'keeping a close eye' on the promising talent, whose release clause was set at an affordable €25million.

But Torres has ended all speculation by putting pen to paper on a new deal with Valencia, which has bumped up the fee it would take to sign him.