Sky Sports sources understand that Liverpool have agreed a compensation fee with Swansea for Brendan Rodgers and three of his backroom staff.
The Anfield outfit now look to have removed the final obstacle in their search for a new boss with confirmation of Rodgers' appointment on a three-year deal expected to follow.
The Northern Irishman emerged as the leading candidate for the Merseyside vacancy in recent days after initially rejecting the opportunity to discuss the post.
Kenny Dalglish was sacked by the club's American owners, Fenway Sports Group, just over two weeks ago after overseeing a mixed season for the club.
Liverpool added silverware to their trophy cabinet in the shape of the Carling Cup and also reached the FA Cup final, but a dismal performance in the Premier League, where they finished in eighth and 37 points adrift of champions Manchester City, led to Dalglish's departure.
Rodgers has earned widespread plaudits for the style of play he has introduced with Swansea, having been appointed at the Liberty Stadium in July 2010.
The former Watford and Reading boss guided the Swans into the top-flight via the Championship play-offs and then established the Welsh club in the top-flight with an attractive brand of football.
Wigan boss Roberto Martinez had also held talks with Reds owner John W Henry before being usurped in the race for the hot-seat by his Premier League rival.