Liverpool have agreed a deal to sign a 16-year-old Spanish starlet courted by Real Madrid and Barcelona.
Cadiz academy midfielder Jesus Fernandez Saez, nicknamed Suso, is expected to sign a five-year contract at Anfield.
Employment laws meant Suso was not on a professional contract and also made it difficult for him to sign for another Spanish club, giving Liverpool the advantage in negotiations.
Cadiz sporting director Julio Peguero said the Spanish second division club had done everything possible to keep him.
'The football laws for players of this age are very complicated,' Peguero told the Diario de Cadiz. 'We have offered him a contract, but it didn't happen.
'The laws protect the players at these ages and we don't have any choice but to accept it. To another Spanish club he might not have gone, but abroad yes.'
Liverpool will have to pay compensation to Cadiz.