Rangers have agreed to sell 18-year-old defender Danny Wilson to Liverpool in a deal worth up to £5million.
Liverpool have been tracking Wilson for several months and are now set to complete the transfer after the teenager was pulled out of the Rangers squad that set off on a pre-season tour of Australia on Tuesday evening.
Rangers chief executive Martin Bain told the club's official website: "We have agreed a deal in principle with Liverpool for the transfer of Danny Wilson. Liverpool's offer will see the club receive Â£2million up front with add-ons linked to games played, taking the total value of the deal to Â£5million."
Rangers had anticipated Wilson's departure towards the end of last season after the centre-back refused a new contract offer.
Liverpool`s interest initially failed to materialise as Rafael Benitez left the club but new manager Roy Hodgson has approved the deal and Wilson could join Joe Cole and his new team-mates at their Swiss training camp.
Bain, who last week oversaw the Â£2million sale of midfielder Kevin Thomson to Middlesbrough, added: "Danny was entering the final year of his contract with the club and had indicated that he felt it was in his interests to move on.
"Given that and the value of the offer from Liverpool, it was deemed appropriate to accept that offer given the player wanted to go.
"We are aware that with Kevin Thomson and Danny leaving the club in the last week that there is a need to add to the first team squad.
"Our efforts remain focused on doing that during this transfer window.
"We have been active in that regard with the resources that we have and we do recognise that we have to add to a squad that is light in numbers."