Marko Grujic is set to join Hertha Berlin on loan until the end of the season in search of regular first-team football.
The Bundesliga club appear to have won the race to sign the Serbian following interest from a number of clubs across Europe.
Grujic had been tipped to return to Cardiff City on loan after helping Neil Warnock’s side earn promotion to the Premier League during his spell with the club over the second half of last season.
His proposed second stint eventually fell through when the midfielder decided to remain on Merseyside in order to consider alternative options.
Grujic will now sign a contract extension at Liverpool before making the move to Germany, according to the Liverpool Echo’s James Pearce.
The deal would potentially include the same financial punishment clause that Liverpool inserted into Grujic’s contract with Cardiff in order to ensure he gets the game time he needs.
Serie A side Torino recently expressed an interest in the 22-year-old, tabling a loan offer with an option to buy at the end of the season for £9million.
Liverpool swiftly blocked the move on the belief Grujic still has a future on Merseyside beyond his next spell away from the club.
Grujic signed for the Reds from Red Star Belgrade for a fee of £5.1million in 2016, but has since struggled to secure a regular place in Jurgen Klopp’s senior setup.
He has subsequently been a prominent figure in the U23s setup, notably looking a level above a lot of his opponents.
Though Premier League experience with Cardiff would have been a logical move in aim of a future at Liverpool, mere regular first-team football remains the priority.