Dan Ashworth reacts to key Newcastle United development
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Anderson – who missed last weekend’s 1-1 draw against Bournemouth through injury – has made four appearances so far this season.
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Hide AdThe club has not disclosed the length of Anderson’s new deal.
In a club statement, the 19-year-old said: "I'm really happy. I love playing for Newcastle United, and committing my future to the club is something I've really wanted to do.
"It was my aim coming back into pre-season to work hard and earn the opportunity to stick around. I’ve really enjoyed being with the first team group, so hopefully I can keep improving and contribute to the team."
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Hide AdUnited head coach Eddie Howe, added: "We’re all delighted with Elliot's development. He’s a natural talent, but he also has an excellent work ethic – and always wants to learn.
"I know our supporters will be especially pleased to see another local boy coming through from the Academy into the first team. Elliot has earned that chance, and he has set a great example to our young players.
"He’s just at the start of his journey at this level, but he has a very exciting future ahead, and we’re delighted that his journey will continue here."
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Hide AdSporting director Dan Ashworth said: "Our strategy is not just about who we can buy, it is also about who we have, and how we nurture and develop our best young talent.
"It's crucial for the club and our Academy to provide a pathway for our young players and a belief that if they are good enough, they’ll get an opportunity to play.
"Steve Harper with the Academy, and Eddie Howe and his staff, have been brilliant with Elliot. They’ve given him an opportunity and some great coaching and development to enable him to get to this level.
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Hide Ad"Elliot has shown he has the attributes to have a successful career at this level and we hope he will be here for a long time to come.”
Anderson broke into Newcastle’s first-team squad the season before last, and helped Bristol Rovers win promotion during a half-season loan at the League Two club last season.