Liverpool are expected to trigger Jeremie Frimpong's €35m (£29.5m) release clause.
Talks are progressing well for the Reds to sign Frimpong from Bayer Leverkusen, with the 24-year-old wanting the move to Anfield.
He can play at right-back as well as right wing and is highly rated by Reds boss Arne Slot.
Celtic have sell-on clause which could be worth about £5m.
The Netherlands international was a key member of the Leverkusen team that won the German domestic double last season.
Since joining Leverkusen in January 2021, the ex-Manchester City youth player has scored 30 goals and provided 44 assists in 190 games for the club in all competitions.
Leverkusen signed Frimpong from Celtic in a deal worth up to £11.5m in January 2021.
He moved from Manchester City's academy to Celtic for £300,000 in September 2019.
Frimpong has told Leverkusen that he wants to leave the club.
Sky Sports News had previously reported the defender would be happy to move to Anfield if the club decided to sign a right-back to replace Trent Alexander-Arnold this summer.
Alexander-Arnold announced last week he will leave the club when his contract expires on 30 June.
Conor Bradley, 21, is ending the season as Liverpool's first-choice right-back as they plan for the future without Alexander-Arnold.
Analysis: How Frimpong could replace Alexander-Arnold at Liverpool
Sky Sports' Peter Smith:
"Trent Alexander-Arnold and Jeremie Frimpong are among the top players in their positions in world football - but they're very different players with very different styles. If Liverpool were to sign the Dutchman this summer, he could transform their attacking gameplan.
"While Alexander-Arnold is renowned for his array of passing, putting his team-mates into dangerous positions with his balls into the box or crossfield deliveries, Frimpong progresses his team up the pitch with his running and carrying of the ball.
"The stats illustrate the point, with the comparison between the through balls and take-ons made by the two players over the past two seasons notable. Alexander-Arnold has made 16 through balls in this period, Frimpong just two. Yet, the Dutchman has attempted 168 take-ons, Alexander-Arnold just 82.
"That difference can also be seen in the pair's heatmaps. While Alexander-Arnold often does a lot of his work in deeper areas - and that has been a feature of Arne Slot's tactics this term, with his full-backs staying back at times - Frimpong looks to receive the ball or drive it into advanced areas.
"Of course, Frimpong has played as a right wing-back for Xabi Alonso at Leverkusen and from that higher position has been able to weigh in with a significant number of goals and assists.
"How would he need to adapt his role at Liverpool is an interesting question? Mohamed Salah has spoken this season about how Slot has relieved him of many defensive duties. So if Frimpong were to run into those right-wing areas, could Salah drift into a more central role?
"With Alexander-Arnold leaving, Liverpool will need to adapt. And Frimpong would provide them the opportunity to play in a different way as they look to defend their Premier League crown next season."
Real Madrid have still not made an offer to sign Alexander-Arnold early, a week after contacting Liverpool to ask about the right-back playing for them in the Club World Cup next month.
The England international is joining Real Madrid as a free agent, but they want him to move at the start of June so he can play in FIFA's new expanded month-long 32-team tournament.
Madrid need to make an offer to sign the player early if they want him to feature in their group games in the United States.
They called Liverpool last Monday evening within hours of Alexander-Arnold's 10am departure announcement.
They discussed his early release but did not make an offer.
Alexander-Arnold received a hostile reception from sections of the Anfield crowd when he came on as a second-half substitute in Sunday's 2-2 draw with Arsenal.
Real Madrid also want Xabi Alonso to be their new head coach to replace Carlo Ancelotti by the time they fly to the United States to prepare for their opening game against Al Hilal in Miami on June 18.
Alonso announced on Friday that he would be leaving Bayer Leverkusen at the end of the season.
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