Gini Wijnaldum is due to have his Liverpool medical on Friday after a £25million deal was agreed.
It represents a sizeable profit for the Dutch playmaker, who joined Newcastle United last summer for £14.5million from PSV Eindhoven.
The 26-year-old is set to leave after just 12-months on Tyneside following the club's relegation to the Championship, with PA reporting a medical will take place in Liverpool tomorrow.
Liverpool and Newcastle have been involved in talks for several days but a fee - understood to be £25million - has finally been agreed for the midfielder, who came off the bench in last night's 2-2 friendly draw against Doncaster Rovers.
Press Association Sport report the Reds will pay a maximum of £25million for the Holland international, taking into account various add-ons.
Wijnaldum is understood to have already agreed personal terms with the Anfield club.
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Meanwhile, Newcastle United have completed the signing of Grant Hanley from Blackburn Rovers for £5.5million.
The defender - who had been captain at Ewood Park - has signed a five-year deal at St James's Park and he has spoken of his delight at joining Newcastle.
"I'm over the moon and delighted to be here," said Hanley.
"It is a fantastic opportunity to come and play at such a big club, and one that I couldn't turn down.
"It is an exciting step in my career, but it doesn't stop there. This is just the start, and I am looking forward to helping Newcastle get back into the Premier League."
Benitez says he is looking forward to working with Hanley in order to fulfil his potential.
"Grant is a young player with a lot of ambition to improve and keep growing with us. He is also a strong defender, fast and with personality, a player that surely will increase competitiveness in his position," added the Newcastle boss.