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Marc Guehi is undergoing a medical in London as he prepares for a £35million move from Crystal Palace to Liverpool on transfer deadline day.
The Premier League champions put forward a £35m bid, including a 10 per cent sell-on clause, earlier this month, despite the FA Cup winners initially holding out for a £40m deal for their defender.
The two clubs have now reached an agreement, according to the Liverpool Echo, clearing the way for Guehi to complete his medical and finalise his move to Liverpool.
Palace manager Oliver Glasner had been keen to retain his captain for the upcoming season, but with only 12 months remaining on Guehi's contract at Selhurst Park, the club felt they had little option but to negotiate.
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Joe Gomez was mentioned as a possible part of the deal for Guehi, but Liverpool were not interested in parting with their versatile and long-serving defender on a temporary basis.
Glasner reiterated his stance that Guehi would not be allowed to leave without a suitable replacement lined up.
Following Sunday's 3-0 victory over Aston Villa, where Guehi scored a notable goal, Glasner stated: "We had a meeting in March and we had an agreement that we're just selling Marc if we have the right replacement in.
"And we wanted to have this replacement at the beginning of the season, the pre-season, to be independent from this situation.
"This was July 9, today is August 31, there is no replacement in the building.
Because he loves Crystal Palace, he loves the team and we feel the appreciation he has and he also feels the same from his side."
Crystal Palace's search for defensive reinforcements has been ongoing throughout the summer.
Early on, Sporting's Ousmane Diomande was pinpointed as a key target, while negotiations for Toulouse's young talent Jaydee Canvot are reportedly progressing well.
Interest from Palace in Roma's Evan Ndicka and Manchester City's Swiss star Manu Akanji has been noted, although Akanji seems to be nearing a switch to Inter.
Meanwhile, Brighton's Julio Igor is on the brink of securing a loan deal with Palace, potentially clearing the path for Guehi's much-anticipated transfer to Merseyside.
The £35m deal for Guehi is set to push Liverpool's expenditure to approximately £360m, with Alexander Isak anticipated to shatter the British transfer record later today with a staggering £125m move from Newcastle United.