Philippe Coutinho will join Aston Villa on loan from Barcelona for the rest of the season — subject to a medical and receiving a work permit.
Villa boss Steven Gerrard played a key role in convincing the 29-year-old Brazilian, who he played alongside at Liverpool, to reject several Premier League rivals and opt for a switch to the Midlands.
A brief statement on the club's website said: "Aston Villa and Barcelona have agreed terms for Philippe Coutinho to spend the rest of this season on loan at Villa Park.
"The agreement, which is subject to the player completing a medical and receiving a work permit, also includes an option to buy.
"Philippe will travel to Birmingham in the next 48 hours."
Coutinho spent five years with the Reds, making 201 appearances and scoring 54 goals.
The playmaker's departure should allow Barca to register Ferran Torres for first-team duties.
Torres, 21, was unveiled at the Camp Nou earlier this week following his £46million switch from Manchester City.