The Spaniard was instrumental to Bayern Champions League success in the 2019/2020 season where Bayern Munich won the UEFA CHAMPIONS LEAGUE Title.
The Reds have been linked with the 29-year-old for sometimes and are keen to land the player to Anfield.
Both parties have been holding talks since the beginning of this week, and the move has received a huge progress as both parties have agreed a deal.
Thiago Alcantara will be given his favourite Number 6 Shirt as he's expected to complete his move in coming days.