Marko Grujic has arrived on Merseyside for a medical ahead of his proposed £5.1m move to Liverpool.
The Reds agreed the deal with Red Star Belgrade before Christmas and the 19-year-old midfielder travelled to England at the weekend to finalise the move.
The Serbia U21 international - who was also a member of Serbia's FIFA U20 World Cup winning side in 2015 - is not expected to complete his transfer before Tuesday after which he will rejoin Red Star on loan until the end of the season.
Grujic appeared to confirm the news at the weekend when he posted on his Facebook account: "On 4th January I will become a Liverpool player."
Liverpool fought off late interest from Russian clubs CSKA Moscow and Zenit St Petersburg - who were offering over £7m - after personal intervention from Liverpool manager Jurgen Klopp.
Schalke defender Joel Matip, who is out of contract at the end of the season, is also reported to be a summer transfer target for Liverpool but there is still plenty of work to be done to sign the German-born Cameroon international.
The Press Association says there are at least two French clubs ahead of Liverpool in the running for the 24-year-old while Schalke have not given up hope the centre-back will sign a new deal.
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