Brendan Rodgers is set to become the new Liverpool manager in the next 24 hours, if compensation is agreed, Swansea City chairman Huw Jenkins has confirmed.
Rodgers, who exactly one year ago to the day won the Championship play-off final to reach the Premier League with Swansea, is expected to sign a three-year deal at Anfield.
Liverpool are expected to pay Swansea between £4 million and £5 million in compensation after securing the Northern Irishman's services.
Swansea chief Jenkins said: "I was contacted by Liverpool [on Tuesday] night and they expressed their wish to speak to Brendan regarding their vacancy.
"I had a discussion with Brendan to talk about their interest and his views on whether he wanted to speak to Liverpool. He expressed his wish with me to do that and he has spoken with Liverpool today.
"Following discussions with Liverpool's owners Brendan has informed us that he would like to take up their offer to manage Liverpool. At the moment we are currently in talks with the owners to agree compensation. We are trying to finalise that within the next 24 hours.
"Although we are very disappointed to lose such a talented, young British manager we did not wish to stand in his way."
"As always at Swansea City, we want people working here who are fully committed to the task ahead. We wish Brendan every success in the future. We will always remain good friends and we thank him for all his hard work and passion at this football club over the past two years.
"We shall now refocus and quickly start the process of finding his replacement to continue the great work Brendan has carried out at this football club."
Rodgers guided Swansea, the first Welsh side to play in the Premier League, to an 11th-place finish after being promoted through the play-offs in 2011. It was not only this record but the attractive passing style that the Swans played with on their top flight debut that impressed Liverpool owners Fenway Sports Group.
Rodgers succeeds Liverpool legend Kenny Dalglish as manager after the Scot was sacked on May 16. Winning the League Cup and reaching the FA Cup final did not mitigate an eighth-placed finish in the league, 17 points adrift of the Champions League places.
Dalglish's last match in charge was a 1-0 defeat by Swansea, capping an impressive first top flight campaign for Rodgers. The 39-year-old was quickly in the frame to take over at Anfield, but initially declined the opportunity to talk with FSG.
Liverpool instead turned their attention to Wigan manager Roberto Martinez, with chairman Dave Whelan at one point suggesting he had been offered the job.
Both Liverpool and Martinez denied agreeing any deal, with the Reds insisting that they were keen to approach Rodgers, Martinez's successor at Swansea.
It remains to be seen exactly what system Rodgers will work under at Anfield as American owners FSG were keen to split the workload of former director of football Damien Comolli, who was sacked in April.
Dutchman Louis van Gaal emerged as the leading candidate to take a sporting director role but it is known both Martinez and Rodgers had expressed a desire to have greater control of footballing affairs.
With their manager almost in place Henry and chairman Tom Werner, who will attended the Premier League's chairmen's meeting on Thursday, have to decide whether that structure can still work.