Sport says Liverpool have agreed a personal deal with Bayern midfielder Thiago.
The Spaniard has been heavily linked with a move to Anfield, with his contract set to expire next summer.
Bayern chief Karl-Heinz Rummenigge has confirmed the 29-year-old wants to leave this summer.
“He's a great guy on and off the pitch," he told Bild. “We negotiated with him and met all of his wishes. But Thiago Alvantara wants to leave.
Liverpool are now in the process of negotiating with Bayern after the personal terms were agreed with the player.