Hearts have agreed to sign Danny Wilson from Liverpool on a three-year contract, with the defender due sign on a permanent basis when his contract at Anfield expires.
The 21-year-old spent the last four months on loan at the SPL club and played 14 times for the Jambos.
Wilson made the move to Anfield from Rangers for £2m in 2010 but he will soon be returning to Scotland.
"It didn't take me long to decide about committing myself to Hearts once the club made it known they were keen to keep me," he told the club's official website.
"I just want to play football and I firmly believe that staying at Tynecastle will benefit my career.
"I really enjoyed my time on loan here and am very pleased the move has been made permanent. This is a great club with great supporters and I'm looking forward to helping bring more success to Hearts.
"I believe the club has a bright future with a lot of good young players and being part of that excites me."
Wilson becomes Hearts manager Gary Locke's first signing, although centre-back Marius Zaliukas looks destined to leave the club.
"I'm delighted that Danny has decided to sign for the club permanently," said Locke.
"He has a wealth of experience despite only being 21 years old and has already shown how talented he is in his loan spell here.
"I'd like to thank Liverpool for allowing him to come here in the first instance, and Danny himself for showing faith in this club and choosing us when there was interest elsewhere.
"This is the type of player I want to attract to the club and I firmly believe that if he continues to play the way that he can then he'll be called back up to the Scotland squad in no time at all."