As per Sky Sports, Ben Davies is set to join Championship side Sheffield United on loan.
A season-long deal was agreed on Saturday morning and the final details are being arranged for the centre-back to complete the move early next week.
Reportedly, Davies has been the top choice for Sheffield's new manager Slavisa Jokanovic to fill the left-sided centre-half spot.
Reportedly, the Blades wanted to sign Davies on a permanent deal but that approach was rejected by the Reds who preferred a loan move.
Davies joined Liverpool from Preston North End in January but is yet to make a competitive appearance for the team.
The Reds had planned to keep Davies as back-up, but Rhys Williams is said to have impressed Jurgen Klopp in pre-season and Davies needs regular games.
The loan fee is undisclosed and includes a bonus if Sheffield are promoted to the Premier League.