Ritaccio's return to the United States for a spell with USL Championship team Charleston Battery was viewed as a good chance earlier in the year.
The midfielder stated it was "great to be back" in his home country following an injury-plagued first half of the season with Liverpool in which he played only four games for the under-23s.
However, his time at South Carolina did not go as he had hoped because of a number of injuries that kept him out for five months.
In a mutual decision between the two clubs, Ritaccio has now been confirmed to have been returned to Liverpool as part of a mid-season restructuring.
The 20 year-old player, who joined Liverpool in 2018, agreed to a new deal with them last summer, although he hasn't played much at the youth level.
The American midfielder has been returned to the Reds' roster and will continue his recovery at the AXA Training Centre with the goal of either playing for the under-21s this season or going out on another loan.
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