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After rising through the ranks of Liverpool's prestigious academy, the Reds were reportedly keen on keeping the 16-year-old prodigy.
As a result of his stellar performances in midfield for Liverpool's Under-18s last season, the Merseyside outfit offered the young phenom a lucrative scholarship - but Ennis has rejected the club's proposal.
According to the Liverpool Echo, the Reds are now understood to be resigned to losing the talented youngster, with United and Chelsea heavily linked as his next club.
It is understood that Chelsea are closer to landing Ennis at this stage, while the Reds are now fully focused on demanding a development fee for the young midfielder.
The 16-year-old, who bagged five goals in eight games for Liverpool's development squad last season, recently spent time at Chelsea's Cobham training ground, as revealed on his Instagram.
Had been suggested Liverpool youngster Ethan Ennis could sign for United. Appears he is off to Chelsea instead... pic.twitter.com/cAqgoPAlh4
- Dan Coombs (@DanCFootball) June 17, 2021
However, should Liverpool and Chelsea fail to reach an agreement over the fee of the teenager, the case will be taken to a tribunal to determine what is owed to the Anfield side.
Elsewhere, Liverpool have secured the futures of a number of Ennis' teammates this summer.
Ten youngsters have signed their first-year scholar terms, including Kaide Gordon, Stefan Bajcetic and Calum Scanlon.