Everton have signed teenager Jose Baxter, one of their brightest young prospects, on a new two-and-a-half year contract.

The Bootle-born 17-year-old has already made four senior appearances for the club - three this season - and is rated highly by manager David Moyes.

Baxter told evertonTV: "I'm feeling great. It is a dream come true to sign a contract for Everton. To be offered a contract was a great feeling but actually signing it was something else. I have to keep working hard now and make sure I earn another one in the future."

Earlier this campaign he became the youngest player ever to start a senior game for Everton and has now graduated from the academy.

He is the second of Everton's local prospects to be rewarded with a senior contract in the past fortnight after Birkdale-born Jack Rodwell signed a new deal in February.

Midfielder Baxter became the youngest Toffees senior player when he played against West Brom in August.

Baxter has been with the club since he was six. He is a regular in the reserves and was on the bench against Aston Villa and Bolton recently.

He also skippered the England Under-17 side in the Algarve Tournament last month.