Argentine defender Gabriel Paletta has agreed a four-year deal to join Liverpool at the end of the season.
Paletta starred for Argentina in last year's Under-20 World Cup
The player's current club Atletico Banfield had claimed on Monday that talks over the move had been postponed until the summer.
However, Liverpool revealed on their website that a deal has now been finalised, subject to a medical.
Paletta, who turns 20 on Wednesday, helped Argentina win the Under-20 World Cup in 2005.
He has made 33 appearances for Banfield and scored five goals.
Paletta's arrival will further boost Liverpool boss Rafael Benitez's defensive options following the recent acquisitions of Daniel Agger and Jan Kromkamp.