Grujic had already seen proposed moves to Cardiff City, Middlesbrough and Torino break down this summer, with the Serbian requiring further game time away from Anfield.
His expected return to the Bluebirds collapsed due to a stall in negotiations with the Reds, who have been eager to tie the 22-year-old down to a new deal before sanctioning his temporary exit.
But according to the Liverpool Echo‘s James Pearce, Grujic has now reached an agreement which will keep him at the club until at least 2023.
Grujic will sign an improved contract with Liverpool before heading out to Berlin to join Pal Dardai’s Hertha.
“Jurgen Klopp was instrumental in the decision that Hertha was the best place for the combative midfielder to continue his development,” Pearce writes.
“The Reds boss views Grujic as first-team material for Liverpool next season and wanted to ensure he went somewhere that would enable him to mount a serious challenge for a starting role when he returns.”
This will be the No. 16’s third loan switch since joining from Red Star Belgrade in 2016.
He returned to Red Star for the remainder of the 2015/16 campaign before spending the following season on Merseyside, then heading out to Cardiff midway through last term.
Grujic made great strides in Wales, and the hope was he would rejoin Neil Warnock’s side after their promotion to the Premier League.
But instead he will follow in Allan Rodrigues’ footsteps and look to carve out a role at the Olympiastadion—though he should fare better than the Brazilian.
Allan made 16 appearances for Hertha in 2016/17 as he sought first-team football in order to gain a UK work permit, but started in just eight of those, averaging 51 minutes per game.
Given his stature and experience, Grujic should take up a regular role under Dardai, before returning to Liverpool to vie for a first-team berth.