Liverpool have agreed on a deal with Bayern Munich with £20million to sign Thiago Alcantara, with a further £5m in potential add-ons.
The midfielder is expected to sign a four-year deal and will wear the no.6 shirt.
Thiago is available for a cut-price fee as he nears the end of his contract, and has made no secret of his desire for a new challenge.
Bayern are believed to want around €30m for the midfielder, and talks have now opened over a fee.
The German club’s former president Uli Hoeness claimed last week that Thiago had an agreement with Liverpool and possibly Manchester United in place.
But it is the Reds who are now strong favourites to secure his signature after firming up their interest this week.
Jurgen Klopp has made no secret of his admiration for the Spaniard, who has won 16 trophies during his time in Munich.
Asked about interest in Thiago last week, the German offered a glowing assessment of his qualities while playing down a potential move.
He said: “Thiago Alcantara is a really good player. It’s nice we are linked with him but that’s pretty much all really.
“He’s a good player, Liverpool is a big club, so it’s nice, but apart from that, I’ve got nothing to say. Unfortunately, I cannot end the speculation.”
Thiago was arguably Bayern’s man of the match as they defeated Paris Saint-Germain in the Champions League final last month.
Attempts to tie him down to a new deal have failed, however, with the midfielder’s heart set on a move to the Premier League.