Rangers have agreed to sell defender Danny Wilson to Liverpool in a deal worth up to £5million.
The 18-year-old, who came through the youth ranks at Ibrox before penning his first professional contract there three years ago, has been a target of the Anfield club for several months.
Sky Sports News revealed earlier on Tuesday that Liverpool were in advanced stages of discussions with Rangers, with only the transfer fee left to agree on.
And the Ibrox club has now confirmed that Reds are set to complete the transfer after the youngster was pulled out of the Rangers squad that flew out to Australia for their pre-season tour on Tuesday.
"We have agreed a deal in principle with Liverpool for the transfer of Danny Wilson," said Rangers chief executive Martin Bain on the club's official website.
"Liverpool's offer will see the club receive £2million up front with add-ons linked to games played, taking the total value of the deal to £5million."
The deal could be completed on Tuesday night, which would allow Wilson to join up with Reds at their training camp in Switzerland.
Rangers had expected Wilson to exit the Scottish club after the defender turned down a new contract offer.
"Danny was entering the final year of his contract with the club and had indicated that he felt it was in his interests to move on," added Bain, who oversaw the £2million sale of midfielder Kevin Thomson to Middlesbrough last week.
"Given that and the value of the offer from Liverpool, it was deemed appropriate to accept that offer given the player wanted to go.
"We are aware that with Kevin Thomson and Danny leaving the club in the last week that there is a need to add to the first team squad.
"Our efforts remain focused on doing that during this transfer window.
"We have been active in that regard with the resources that we have and we do recognise that we have to add to a squad that is light in numbers."