Charlton Athletic's England youth international Jonjo Shelvey will join Liverpool on May 10.
The 18-year-old has passed a medical and agreed personal terms after the two clubs yesterday agreed a fee. Liverpool will pay an initial £1.7m with further potential payments depending on domestic and international appearances.
Shelvey became Charlton's youngest player when he made his first-team debut against Barnsley at Oakwell in April 2008 at the age of just 16 years and 59 days. He is also the club's youngest FA Cup and league goalscorer.
He has made 48 appearances and scored eight goals for The Addicks and is an established England U17 international.
Liverpool's Managing Director Christian Purslow said: "Jonjo is an exciting young England international. His signing is part of our long-term strategic recruitment plan and we all look forward to welcoming him to Melwood."
The two clubs are also in talks to develop a strategic partnership involving the development of players in both directions as a result of the transfer.
Charlton Athletic plc chairman Richard Murray said: "It is with the greatest reluctance that we have accepted an offer for Jonjo from Liverpool.
"No club likes to lose such a talented prospect, but the overall package is one we couldn't refuse, and one which was very attarctive to Jonjo.
"Liverpool are going to develop him over the next few years to be a top player, and I can't think of a better place for him to go to."