Espanyol have announced on their official website that midfielder Albert Riera has travelled to England to undergo a medical with Liverpool after the clubs agreed terms on a deal.
Liverpool's qualification for the Champions League group stages appears to have been a key factor in the completion of the deal for the left winger, as the club can now expect to generate the rumoured £8m fee for Riera.
Earlier in the week Espanyol had already received a £12m offer from Everton for the player, who spent a spell on loan with Manchester City in 2006. However, the 26-year-old informed the Spanish club that he would not consider a move to Everton, giving Liverpool the chance to snap him up for less money.
Gareth Barry, who had been Rafa Benitez's preferred left-sided option, will face Liverpool this Sunday after Villa this week announced that he would not be moving to Anfield before the transfer window closes.
Meanwhile, midfielders Javier Mascherano and Lucas are back in Liverpool's squad following their return from the Olympics. But the Reds will be without skipper Steven Gerrard, who is recovering from a groin operation.