Swansea City manager Brendan Rodgers is poised to be announced as the new Liverpool boss, according to reports.
• Reds to reveal new manager on Friday
The BBC claim Rodgers, 39, will agree a three-year contract at Anfield, with Liverpool handing between £4 million and £5 million in compensation to Swansea.
Liverpool are on the hunt for a new head coach after they sacked Kenny Dalglish at the end of the 2011-12 season following poor home form in the Premier League.
A host of managers have been linked with the vacant post, with Wigan's Roberto Martinez recently thought to be the favourite for the role after holding talks with the club's owners FSG.
However, Martinez has now decided to stay at Wigan and it is suggested that he was unwilling to work under Liverpool's proposed structure of a series of sporting directors, as the Spaniard wanted a far greater level of control over team matters and beyond.
Swansea's Rodgers has now emerged as the leading contender, and reports claim a compensation deal with his current side is being worked on ahead of an appointment in the next 48 hours.
On Wednesday evening, the South Wales Echo reported that Rodgers had left Swansea following a meeting with owner Huw Jenkins and was free to sign his contract with Liverpool on Thursday.
Rodgers took over at Swansea in 2010 and subsequently led the club to the Premier League. His team's passing style of football secured an 11th placed finish this term.