6:45PM BST 06 Jul 2011
The Anfield side have agreed a fee, which could rise to £8.5 million, with Blackpool for the 25 year-old, who travelled to Merseyside to undergo a medical and discuss terms.
Adam will be unveiled as Dalglish's second capture of the summer - following the £16 million signing of Jordan Henderson, the former Sunderland midfielder, last month - in the next 48 hours and is likely to join his new team-mates when they depart for their pre-season tour of China and Malaysia on Sunday.
A brief statement released simultaneously on Blackpool's and Liverpool's websites on Wednesday afternoon confirmed that the two clubs had agreed a fee to bring an end to one of the Premier League's longest-running transfer sagas.
Liverpool were first linked with Adam last January, when a bid of around £7.5 million was rejected by Blackpool, despite the player's private desire to leave Bloomfield Road. Talks between Blackpool's chairman, Karl Oyston, and Liverpool's director of football, Damien Comolli, began immediately after Ian Holloway's team were relegated in May in a bid to resurrect the deal.
It is believed Liverpool were informed that they would have to better the offer they made in January despite Blackpool's demotion and the fact that Adam's contract at the Championship club would have expired at the end of the current campaign.