Mellor to get new deal
The 20-year-old striker has forced his way into the starting line-up at Anfield, and celebrated his first senior goal during the Worthington Cup defeat with Sheffield United in midweek.
"Neil wants to stay with Liverpool and knows that we want to keep him," revealed Gerard Houllier.
"Moves are already under way to sort that out."
The emergence of the young attacker has partially helped off-set the loss of form by England international Emile Heskey.
"This season Emile hasn't been firing yet," confessed Houllier.
"But I know he will.
"I had a long chat with him earlier today because Emile's a player who needs to know you believe in him.
"It's a confidence thing.
"Emile's probably one of the players who is most affected by the criticism."