The Reds are said to have beaten off competition from Barcelona, Real Madrid, Sevilla and Villarreal for the midfielder's services.
After a significant amount of time negotiating the deal the player's family have finally accepted Liverpool's offer.
Cadiz, currently in Spain's second division, are also said to be happy with the transfer after they were handsomely rewarded in terms of compensation.
The youngster is thought to have signed a five-year contract on Merseyside, according to the newspaper Diario de Cadiz.
The teenage sensation is a left-footed player and is thought to possess an innate footballing brain.