Chelsea have agreed a fee with Southampton for midfielder Romeo Lavia.
The deal is worth £58m, comprised of an initial £53m + £5m in add-ons.
Lavia has been given permission to undergo a medical.
Personal terms are not expected to be an issue and the 19-year-old will undergo a medical later this week ahead of a move to Stamford Bridge.
Liverpool had previously had a £60m ($76.2m) offer for Lavia accepted by Southampton but the player expressed a desire to join Chelsea, allowing the Blues to negotiate a slightly lower fee.
It is the second time in a matter of days that Liverpool have lost out on a midfielder to Chelsea after Jurgen Klopp’s side agreed a British record £111m fee with Brighton for Moisés Caicedo, only for the player to reject the proposal.