The 22-year-old has agreed to extend his time in Merseyside until 2023 with the talented youngster travelling to Berlin after the Bundesliga side won the race for Grujić's signature for the season.
Grujić was frustrated to only three domestic appearances last season for the Reds, however, a loan move to Cardiff City saw the midfielder impress under manager Neil Warnock helping the South-Wales club earn promotion to the Premier League.
The Bluebirds were amongst a number English sides who were interested in adding the young Serbian to their squads for the season with Crystal Palace and Middlesborough also making themselves firmly interested in the Liverpool star.
Other lucrative offers from Europe came pouring through over the summer window for Grujić with Serie A side Torino having a loan-move rejected with a £9 million option to buy him in 2019.
However, Grujić's German manager Jürgen Klopp was instrumental in ensuring that Hertha was the perfect place for his versatile midfielder to continue his development.
Monitoring his development
Grujić's decision to play this seasons football in Klopp's homeland combined with the lengthy extension to his Liverpool deal suggests that his manager see's the youngster as future first-team material potentially for next season.
A year mastering his craft away from the English spotlight could see Grujić replicate the success of fellow Merseyside star and Everton forward Ademola Lookman who flourished in the Bundesliga with RB Leipzig last campaign.
It was always important to Liverpool that their midfielder was guaranteed minutes on the pitch, and options like Crystal Palace were never really considered by the Reds as there was no certainty to whether Grujić would be a regular starter or just another squad player.
The 6ft 3 combative midfielder cost the Reds £5.1 million from Serbian side Red Star Belgrade back in 2016, and Klopp isn't ready to offload a potential future talent just yet.
His time in Germany is an exciting one for Grujić who will be excited by the prospect of facing up against some of Europe's fiercest juggernauts including the likes of 2013 Champions League finalists Bayern Munich and Borrusia Dortmund.
The next phase of Grujić's development will be orchestrated by Hertha manager Pál Dárdai who led his Die Alte Dame side to a 10th-place finish last season.