The youngster, who is from the North West but cannot be named for legal reasons, entered his plea via video link from Manchester Crown Court.
Wearing a grey shirt and tie, the boy spoke only to plead guilty.
The charge states that between March 15, 2014 and March 26 the boy incited a person to commit an act of terrorism wholly or partly outside the UK, namely the murder of police officers during an attack on a parade to commemorate Anzac Day in Australia.
A second charge of inciting terrorism overseas in relation to beheading a person in Australia was dropped by the prosecution.
Prosecutor Paul Greaney QC told the court: "This charge represents conduct over a ten-day period in March this year, of inciting an Australian based man to commit an act of terrorism abroad, namely murder a police officer during a parade to commemorate Anzac Day.
"The evidence of the plot derives from literally thousands of instant messages between the defendant and Sevdet Besim, recovered from the defendant's mobile phone.
"On March 18, the defendant sent Sevdet Besim a message saying: 'Suggest you break into someone's house and get your first taste of beheading'.
"Sevdet Besim said this seemed a little risky."
Mr Greaney told the court this plot would be 'part and parcel' of the allegations that the boy has now admitted.
Mr Justice Saunders ordered reports before sentencing, saying: "I want to know if there is any indoctrination or belief in this case.
"I want some assessment of that, why and how they have occurred, and what measures can be taken in order to reverse that process."
He said the sentencing process would be 'extremely difficult' when it takes place on September 3.
Posted by Women Against Shariah on Thursday, July 23, 2015
From The Mirror: