Joshua King has agreed a new two-year contract with the Reds, extending his terms until the summer of 2013.
The Norwegian forward has been a regular member of the reserve team that won their league and lifted the Manchester Senior Cup this season.
Earlier in the campaign, the 19-year-old picked up some valuable experience during a loan spell with Preston in the Championship.
King is a versatile forward with explosive pace and was on the substitutes' bench for the first team's 4-0 victory at Wigan.
Although showing a real eye for goal when playing through the middle, the teenager was also deployed in a wider role towards the end of the term.