11:35AM BST 14 Jul 2011
Liverpool announced Wednesday it had "been granted permission to discuss personal terms" with Downing.
The team arrived in Malaysia on Thursday for its preseason Asian tour but an official representing the Malaysian sponsors of the tour said they have been told Dalglish would fly back to England later Thursday. He spoke on condition of anonymity because he was not authorised to make the announcement.
Liverpool kicked off its Asian tour with a 4-3 victory over China's Guanghong Sunray Cave on Wednesday and is scheduled to play against a Malaysian side Saturday in its first trip to Kuala Lumpur.
Dalglish earlier Thursday declined to elaborate about the terms of the Downing agreement.
"We have agreed a fee with Aston Villa and he will undergo a medical. It is an ongoing process and we will reveal the details once everything is sorted out," he told a news conference.