Sources in Brazil have confirmed that the player completed his medical on Tuesday and a work permit has been acquired.
Cavalieri's agent, Juninho Parmigiani, told Brazilian media: "We will conclude everything soon. He has already had the necessary medical examinations, talked with some of his new team-mates and has been impressed by what Rafael Benitez had to say to him."
Palmeiras' sporting director, Toninho Cecilio added: "I have spoken and he has completed the examinations and is very happy. There are some clauses still being discussed but nothing that can block the deal."
The Brazilian will be the club's number two keeper behind Jose Reina and his signing could signal the end of Scott Carson's Liverpool career.