Liverpool have handed Sepp van den Berg a new long-term contract and allowed the defender to join Schalke on loan for the rest of the season.
The Dutchman, who arrived at Anfield in 2019, was expected to spend the campaign away from Merseyside to experience more first-time football and Blackburn Rovers were hopeful of signing him.
Liverpool on Tuesday confirmed the 20-year-old has signed a new deal and will continue his development in the Bundesliga.
"I was really happy when I heard Schalke were interested in me," the former Preston North End loanee stated. "I will [take this chance] with complete conviction."