Thiago Alcantara has agreed to sign for Liverpool in a €30m deal after talks with Bayern Munich progressed rapidly this week, according to reports.
The Spanish midfielder will sign a four-year deal according to reports and take the number 6 shirt.
Jurgen Klopp moved to quash speculation that any deal had been agreed last week, insisting he wished all the talk would subside, as it was just "speculation".
However, various UK media outlets are suggesting that talks between Bayern and Liverpool have gathered pace since Monday, with the European champions keen to get any deal completed, should one materialise, before the start of the Bundesliga season, which gets under way this weekend.
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It had initially looked like any deal would be dependant on the future of Gini Wijnaldum who is also in the final year of his Anfield contract, but Liverpool have decided to make their move now.
"Thiago was an exceptional player for seven years for Bayern Munich," Bayern coach Hansi Flick told reporters on Thursday. "The way he played he gave many options to the team, he was a surprising player because he solved problems in ways people did not expect."
It was a joy working with him. He is an absolute professional and a great person. I congratulate Klopp. He gets a top player and a sensational person.
Analysis - Liverpool need to strengthen, and Thiago adds different dimension
Thiago, for all his myriad of ability, never really looked at home in the Bayern side. This new-look Bayern machine are all about power and athleticism - just look at Leon Goretzka's biceps.
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Liverpool's midfield is also a dynamic engine room, but adding a different dimension, for a snip of a transfer fee, cannot hurt one bit.
Klopp will relish the opportunity to coach Thiago and utilise all that passing ability. With options galore for Thiago when he graces the Anfield turf and wants to pick a pass, the goals, and assist could flow. Even the best teams need to keep trying to improve their squad if they want to stay at the top, and Liverpool are no exception, regardless of their points haul last season
One man who will not be overly enthused about this move is Naby Keita, as his already limited game-time could diminish even more, but in terms of the team unit, Liverpool could be about to become an even more formidable force.