Spanish newspaper Marca claim Liverpool are set to land Porto right-back Danilo this summer.
The 23-year-old had been linked with a move to Real Madrid, but has reportedly been warned off joining the Spanish giants by Barcelona forward Neymar, a close friend and compatriot of Danilo.
Danilo has a release clause of £38.6m but the Reds would expect to land the player for a fee in the region of £28m.
Reds boss Brendan Rodgers is keen to sign a new right back this summer as a replacement for Glen Johnson.