Sunderland have confirmed that they have agreed a fee with Liverpool for Jordan Henderson and the midfielder will hold talks with the Anfield club on Wednesday.
Sky Sports revealed late on Tuesday night that a deal was in place, which is believed to be worth £20million and includes David Ngog moving to the Stadium of Light.
Henderson, who is due to leave with England at the weekend for this summer's Under 21 European Championship, is now set for a medical at Liverpool.
A Sunderland spokesperson said in a statement on the club's official website: "A fee has been agreed with Liverpool for Jordan Henderson and he travels to Anfield today with the club's blessing."
A short statement from Liverpool also confirmed that Henderson is on the brink of completing a move to Merseyside.
The 18-time champions of England said on their official website: "Liverpool have agreed a deal to sign Sunderland midfielder Jordan Henderson.
"The 20-year-old will today discuss personal terms and undergo a medical on Merseyside after a fee was agreed between the two clubs."
Liverpool, who signed strikers Andy Carroll and Luis Suarez in a January spending spree fuelled by Fernando Torres' departure, have wasted little time in adding to their squad again.
The Black Cats had repeatedly stated their highest-profile Academy graduate was not for sale, but Liverpool's cash has persuaded them to part company with the 20-year-old.
As was the case when Aston Villa came calling in January with a deal potentially rising to £24m for Darren Bent, Sunderland were made an offer which represents an irresistible return on their investment.
Although the figures add up favourably, what is not in dispute is that Henderson's departure will leave another major hole in Steve Bruce's squad.
The midfielder's form suffered in the immediate aftermath of his senior England debut against France in November in 2010, but he has been a key man for Sunderland in the last two seasons and will take some replacing.
The manager is already engaged in an extensive recruitment drive with Bent yet to be replaced, while the returns of loan signings Danny Welbeck, Nedum Onuoha, John Mensah and Sulley Muntari to their clubs has left him with a series of sizeable gaps to plug.
Bruce is targeting as many as three strikers and in the circumstances, the inclusion of 22-year-old Ngog in the deal will prove an attractive benefit, although he has been a largely peripheral figure during his three seasons to date at Anfield.
Allowing Henderson to leave will add another item to the shopping list, but significantly boost his transfer kitty, with owner Ellis Short remaining supportive despite having reined in some of the rather less controlled spending of recent years.
For Liverpool, the deal continues the policy of owners Fenway Sports Group, who are keen to remodel a squad to contain young, British talent.
Is the £20 million fee for Jordan Henderson...