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Daniels, who donned Bournemouth colours from 2012 to 2020, has been closely following young talent Kerkez since his departure from the Vitality Stadium.
Presently coaching at Watford's academy, Daniels offered glowing remarks, endorsing the Reds' new signing as one of the most promising full-backs on the rise.
"I think that he is a fantastic left-back already but because he is so young he still has a lot to develop and a lot to learn and develop into," Daniels told the Liverpool Echo.
Milos Kerkez is likely to become the first-choice left-back at Liverpool.
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Yes there is competition between players but they are not against each other they are driving each other to be better and better.
"Together we have to work hard and encourage each other because at some point I am going to be playing and at some point, you're going to be playing because we are at Liverpool Football Club, so that is the way it is going to be because we've got so many games coming up."
Liverpool will face Championship side Preston North End in a friendly match on July 13, in which Kerkez is expected to feature.
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