Ibe had a successful loan spell at Derby County and has slotted into the first team at Anfield nicely since his return.
Ibe was sent on loan to Derby County at the start of the season in order to get some more game time under his belt, but was recalled from his spell with the Rams in January, and has since made three Premier League appearances - two from the start - since returning to the side.
He hasn't looked out of place since returning to the side and has demonstrated a degree of versatility by operating in a wing-back role in the current system.
The report says Liverpool are keen to extend his contract beyond 2017 when his current deal runs out, and he can expect a significant wage increase.
There are a few intriguing questions that may crop up surrounding the deal.
Will negotiations be quick or a protracted affair?
There seems to be some concern surrounding Liverpool supporters about the way contracts have been handled so far this season. Two high-profile players have signed new deals in the form of Daniel Sturridge and Philippe Coutinho. But the contract discussions involving Raheem Sterling are still ongoing - while Jordan Henderson, Martin Skrtel and Jon Flanagan are also expected to sign new deals but have yet to put pen to paper.
What role does Rodgers envisage for Ibe?
This is an interesting one. During his time at Derby he played as a more conventional winger, like at times during pre-season for Liverpool. Since his return he has played in a wing-back role and a little further forward but more centrally. We have seen him become part of the squad and in the future it looks like he is going to get some more regular game time, but it's a question of whether Rodgers sees him as one of the vital cogs in his machine going forward, or for now just a squad player. Things can change as he develops, of course.
What does it mean for future transfers?
Can we now expect a quieter transfer window in the summer for Liverpool with one of their more promising talents tied down to a new deal? It depends on the kind of role he has in the side, but it is another indication that the club are looking from within in order to find players and new ways to take the club forward rather than splashing the cash too readily. Ibe certainly looks ready for the demands of the first team, and his demeanour on the field strikes you as a person that has confidence of a man rather than a boy.
The reaction of some on twitter was a positive one, given that one of their brightest prospects looks like he will be tied down to a new deal. Some are hoping Raheem Sterling is the next to follow. The tweets below seem to echo the general mood attached to this news:
Liverpool set to reward teenager Jordon Ibe with new long-term deal. Planning for the future, great news.— LFC Round Up (@LFCroundup) February 19, 2015