Liverpool were poised to wrap up their two-week search for a manager later on Thursday by completing the signing of Brendan Rodgers from Swansea.
Rodgers, 39, was offered the Anfield job on Wednesday and his employers at the Welsh club have agreed to release the highly rated coach from his position at the Liberty Stadium.
The last obstacle to the deal is the amount of compensation due to Swansea, who tied Rodgers to a new three-and-a-half year contract in February.
Reports said Liverpool are expected to pay Swansea up to £5 million (6.3 million euro, $7.8 million) in compensation once terms are agreed later Thursday.
Rodgers, who is expected to sign a three-year deal at Liverpool, will be formally unveiled on Friday, bringing an end to a saga which has rumbled on since the sacking of Kenny Dalglish earlier this month.
"Following on from discussions with Liverpool's owners, Brendan has informed us that he would like to take up their offer to manage Liverpool," Swansea chairmain Huw Jenkins said.
"At the moment we are currently in talks with the owners to agree compensation. We are trying to finalise that within the next 24 hours."
Rodgers emerged as the favourite for the Liverpool job on Tuesday after the club's owners contacted Swansea. Wigan manager Roberto Martinez had previously been in the frame for the position.
"Although we are very disappointed to lose such a talented, young British manager, we didn't wish to stand in his way," Swansea chairman Jenkins added. "As always at Swansea City, we want people working here who are fully committed to the task ahead.
"We wish Brendan every success in the future. We will always remain good friends and we thank him for all his hard work and passion at this football club over the past two years.
"We shall now refocus and quickly start the process of finding his replacement to continue the great work Brendan has carried out at this football club."
Rodgers will be given the task of resurrecting Liverpool's fortunes, with the immediate priority a swift return to Champions League football.
It follows an eighth-place finish in the Premier League this season that was the worst for 18 years, with their lowest points tally since 1953-54.