Liverpool have agreed a deal to sign out-of-contract Burnley striker Danny Ings on 1 July, subject to a medical.
The England under-21 international's current deal with the Clarets expires on June 30 but the recently-relegated club will be entitled to compensation because of the player's age.
Liverpool remain hopeful they can come to a satisfactory arrangement with Burnley without the need for the player's valuation to be decided by a tribunal despite their initial offer being turned down.
"Burnley Football Club has rejected an offer made by Liverpool but will continue to have dialogue with the club in order to reach a resolution over the fee," said a Burnley statement.
The Reds have been in talks with Ings for some weeks and confirmed the deal in a statement which said: "Liverpool FC are delighted to announce that they have agreed personal terms with Danny Ings and, subject to a medical, the striker will join the club on 1 July after his contract with Burnley has expired."
Ings, in his first top-flight campaign, scored 11 goals in 35 league appearances last season - more than Liverpool's leading scorer Steven Gerrard, who managed nine in 29 matches.
The 22-year-old netted 21 times in Burnley's promotion campaign the previous season and will feature for England Under-21s at the European Championships which start later this month.
He is the club's second signing of the summer after Manchester City midfielder James Milner last week agreed to join on a free transfer when his contract at the Etihad Stadium expires.
#LFC are delighted to announce that a deal has been agreed to sign striker Danny Ings, subject to a medical. pic.twitter.com/REoM9qGi9F
— Liverpool FC (@LFC) June 8, 2015Former Liverpool and Republic of Ireland striker John Aldridge believes the signing of Ings makes perfect sense.
"Danny Ings is, for me, a no-brainer," he told liverpoolfc.com.
"The young lad scored 11 goals for Burnley, a team struggling for points, struggling for goals - and he's on the verge of breaking through to the England side.
"He's young and is one who has great potential. He's a goalscorer, he knows where the net is, his movement's good and he's quick.
"He can finish, he's quite clinical in front of goal, so he's a player that will only get better."
The 22-year-old will have competition for a place at Anfield as young Belgium striker Divock Origi returns from a loan spell at Lille while manager Brendan Rodgers is also hopeful of signing another senior striker to play alongside Daniel Sturridge.
Former Reds defender Jamie Carragher also gave his seal of approval to the signings of both Milner and Ings.
"It's nice to see new faces signed so quickly after a disappointing season," he wrote on Kicca. "There's no doubt though that you associate perspiration rather than inspiration with both but on the back of a 6-1 defeat at Stoke and a poor end of the season we need it!
"I think Ings will take the role of (Fabio) Borini in the squad and will provide more than he has, that will probably come in the Europa League and Capital One Cup to start with then it will be up to him to show if he deserves to start more."
Ings' arrival casts further doubt on the futures of the likes of Borini, Mario Balotelli and Rickie Lambert, who managed eight goals between them across four competitions last season.
Borini could have left last summer but turned down moves to Sunderland and QPR despite being told he would have limited pitch time by Rodgers.
"Soon we will have to talk to Liverpool," his agent Marco de Marchi told Italian news outlet Calciomercato.
"Several teams have asked for Fabio on loan but the Liverpool board have always refused, especially in light of the £10million bid that was rejected last year from Sunderland."
