The Reds have agreed a fee with Sporting Lisbon over the transfer of Ilori and the defender will now fly to England to discuss personal terms with the Premier League club.
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Liverpool have agreed a transfer fee with Sporting Lisbon over the signing of young defender Tiago Ilori, Sky Sports reports.
The 20 year is reportedly now on his way to Anfield to discuss personal terms with the Reds and have a medical ahead of the potential move.
Liverpool will reportedly pay around £8 million for Ilori, who is regarded as one of the best young defenders in Europe.
Valencia had also been chasing the 20 year old but Ilori is understood to prefer a move to the Premier League as he was born in London.
Liverpool manager Brendan Rodgers has been desperate to bolster his defence this summer following the retirement of Jamie Carragher and could see IIori as a long term replacement for the Liverpool legend.
Rodgers will hope to complete the signing of Ilori quickly as he is currently short of options in central defence due to the injuries that Kolo Toure and Aly Cissoko suffered in the Reds 4-2 victory over Notts County on Tuesday night.
Ilori has represented Portugal at Under 18, Under 19 and Under 20 level and could make an appearance for the senior squad soon.