Liverpool's 23 year old defender Tiago Ilori will move to Reading for a fee of around £3.75M.
The BBC are reporting that the two clubs have reached agreement.
The Portugese centre-back, who was born in England, joined Brendan Rodgers' reds in September 2013 for £7M but was loaned out to Granada in La Liga three months later without having made an appearance.
He spent the 2014-15 season on loan at Bordeaux in France, before starting 2015-16 on loan at Aston Villa. Klopp cancelled the loan move in January 2016 after the reds were hit by an extensive injury crisis and he made 3 FA Cup appearances for Liverpool.
Reading are currently third in the Championship - the top two places receive automatic promotion to the Premier League. They were last in the division in 2012-13 but have kicked on since last season's 17th place finish in the English second tier.
Liverpool's Joe Gomez has made a successful first team return following a lengthy injury and Joel Matip has returned to training following an ankle injury that has ruled him out for the past month.
Good luck to Tiago at his new club.