Liverpool have struck terms with Inter Milan for midfielder Philippe Coutinho.BBC Sport says Liverpool have agreed an £8.5m deal for Inter Milan's Brazilian midfielder Coutinho.

The 20-year-old is expected to travel to Merseyside early next week for a medical and Liverpool will need to apply for a work permit before the deal can be completed.

Liverpool had two bids turned down for him last week, while Southampton are also interested in signing the player.

But it is understood that Coutinho expressed a preference for Anfield.