The 19-year-old has been on loan at the Championship side since November.
The 19-year-old made three first team appearances for his hometown club in the Europa League, making his first team debut as a late substitute in the 1-0 win away to Hearts in August 2012.
He had a short spell on loan at Rotherham United before returning to the club after making only two appearances for the Yorkshire team.
He made his debut for Yeovil in a 3-0 win against Watford at Vicarage Road in the Championship in November.
Morgan was highly rated by some of the keen followers of Liverpool’s younger players. Plenty of fans are wishing the forward all the best in his new career, some think he should have been given more of a chance at Anfield whilst others seem to think it was for the best that he moved on.
Here is a flavour of some of that twitter reaction:
Shane the loan deal for Adam Morgan has been made permanent. Always thought he had potential and was one for the future. Good luck #LFC— Bum Bum (@loweandbehold29) January 3, 2014
Adam Morgan signed for Yeovil on permanent deal! U wouldn't have expected that a couple of years ago,looked promising.Good luck to him tho— Matt Davies (@matty_davies12) January 3, 2014
Adam Morgan was never going to make it at Liverpool. But good luck to him!— Keegan (@keeganxo_) January 3, 2014
So Adam Morgan's gone. I'm surprised but there's only so long he can play for u21s and go out on loan before we had to make a decision— Sara (@Sara_156) January 3, 2014