The 16-year-old striker was set to start his two-year scholarship at Plainmoor but will instead be joining up with the Premier League side after impressing in a trial.
The Gulls' chief executive Andrew Candy told the Herald Express: "As I understand it, the terms have been agreed, and all parties are happy about the situation.
"We are certainly excited - the deal is good news for the club, and for Liam and his family.
"But it's good for our other youth players, who see that things like this can happen to a youngster at Torquay United."
- Sports & Recreation