A statement on the Liverpool website read: "Liverpool FC can confirm Philippe Coutinho will be leaving the club after a transfer agreement was reached with FC Barcelona, subject to medical and agreement of personal terms.

“The player now has permission to complete the usual formalities to conclude the transfer immediately.”

Meanwhile Barcelona confirmed the signing on Twitter with a video of a dressing room which reveals Coutinho's shirt when a locker door is opened.

Both clubs agreed a £142million fee this evening after months of speculation surrounding the Brazilian's future.

Coutinho has signed a five-and-a-half year contract at the Nou Camp, subject to a medical.

Coutinho flew out to Barcelona this evening to complete the formalities of the move.

The 26-year-old’s squad number or unveiling dates have yet to be revealed.

Liverpool were able to recoup the £75m they splashed out on Southampton's Virgil van Dijk.

Barcelona chased Coutinho all summer but their highest bid was £114m.

But they have now come back with a much-improved offer to land their man.

Coutinho missed yesterday’s Merseyside derby after Liverpool boss Jurgen Klopp said he was ruled out with a ‘thigh injury.’

The Brazilian was expected to return to training this week ahead of the Reds’ trip to Manchester City on Sunday.

Neymar is currently the most expensive signing of all time after moving from Barcelona to Paris Saint-Germain for £198million in the summer.

But Coutinho will now go down as the third most expensive deal in history, behind also Kylian Mbappe.

However, Coutinho's move will be the greatest ever transfer fee involving a British club.