Liverpool have reached agreement with Benfica to bring Uruguay striker Darwin Nunez to Anfield for an initial €75 million ($78.6m), the Portuguese club said on Monday.
The deal could eventually rise to €100 million if certain criteria is met, eclipsing Liverpool's club-record £75 million paid to Southampton for Dutch centre-back Virgil van Dijk in 2018.
Nunez, 22, was left out of Uruguay's squad for Saturday's 5-0 friendly victory over Panama and is expected to begin a medical on Monday before signing on with the Premier League side on a six-year contract.
Nunez scored 26 goals in 28 league appearances last season in Portugal and netted in both legs of Benfica's Champions League quarter-final defeat against Liverpool in April, earning praise from Liverpool boss Jurgen Klopp.
Nunez is likely to arrive at Anfield as a direct replacement for Sadio Mane after Bayern Munich stepped up their pursuit of the Senegal forward.
Liverpool have rejected two offers from the Bundesliga champions and are holding out for a fee in excess of £40 million for Mane, who has one year left on his contract.
Liverpool won the FA Cup and Carabao Cup last season - along with finishing as Premier League runners-up and losing in the Champions League final.
Assuming there are no complications, Nunez is set to become Liverpool's second signing of the summer after Fabio Carvalho.
Carvalho, 19, played a key role in Fulham's promotion to the Premier League, scoring 10 goals and providing eight assists in the Cottagers' Championship-winning campaign.
Carvalho has signed five-year deal for a fee of £5m, with a further £2.7m in add-ons. He will officially join the Reds on July 1.