Sky sources report that Liverpool have agreed a deal with Hoffenheim to sign forward Roberto Firmino.
The Anfield side have been looking to strengthen their attacking options, Sky sources reported earlier in the day that Liverpool had held talks with Carlos Bacca, Salomon Rondon and Firmino and the Brazilian is now on the brink of a switch to Anfield.
Formerly with Figueirense in Brazil, Firmino can play anywhere across the front three, and is currently on Copa America duty with Brazil but Sky sources understand the 23-year-old will sign within the next 24 hours.
Sky Sports News HQ reporter Dharmesh Sheth said: “This is potentially very good news for Liverpool.
“We understand that they have agreed a deal with Hoffenheim for attacking midfielder Roberto Firmino.
“He is at the Copa America in Chile at the moment, but he has given Liverpool a verbal undertaking that he will join in the next 24 hours.
“Sources in Germany have also told us that the deal is as good as done.
“As far as we are concerned, we have been told that the deal has been agreed and that he has given a verbal undertaking that he will join in the next 24 hours."
Liverpool have already signed Burnley striker Danny Ings, while Adam Bodgan, Joe Gomez and James Milner have already been brought in.
The Reds have so far resisted two offers from Man City for Raheem Sterling but with Firmino's arrival understood to be imminent, City could resurrect their interest in the England international.
Sheth added: “Could this have a knock-on effect for a certain Raheem Sterling? They play in similar positions.
“Raheem Sterling has been the subject of two rejected bids from Manchester City. Will Manchester City come back with a third bid, given this news?
“Will Liverpool now think they have got someone in place and be willing to sell Sterling to Manchester City?”
Firmino arrived at Hoffenheim at the start of 2011 having been signed for £3.52m as a 19-year-old, and has scored 48 times in 152 appearances for the German side, notching seven times in the Bundesliga last term.
And he was also on target for Brazil in their 2-1 Copa America victory over Venezuela on Sunday.
In the absence of Neymar, who has been suspended for the rest of the event, Firmino and Philippe Coutinho, who is already a Liverpool player, are set to start again in Saturday's quarter final against Paraguay.