Liverpool finally reached an agreement with Aston Villa over a reported £20 million fee, allowing the Reds to talk to Downing over personal terms. Arsenal were also interested in the England international, but it is Liverpool who appear to have won the race.
Dalglish has kept extremely silent regarding his transfer dealings, but he felt confident enough on Thursday to confirm only a medical failure will prevent Downing moving to Anfield.
"We have been given permission to speak to the player," confirmed the Liverpool manager.
"We will now try to agree personal terms with him, but it will all depend on the medical. It is a work in progress and we will see what happens and keep you informed."
Downing made his way to Merseyside on Thursday afternoon and, if the finer points of his transfer mirror those of Charlie Adam, he will become a Liverpool player on Friday. The left winger's arrival will take Dalglish's summer spending towards the £50 million marker.