Jurgen Klopp’s side signed Thiago Alcantara from Bayern Munich on Friday and are now pressing the accelerator on their transfer business.
Klopp wants another attacker adding to the ranks and Liverpool already have an agreement on personal terms with Portugal international Jota.
They have been in talks with Wolves to agree a fee and have now succeeded.
Liverpool will pay the Molineux club an initial £41m for Jota, with the final fee potentially going as high as £45m.
Reds defender Ki-Jana Hoever is to head the other way, to Wolves, but the two deals will be separate arrangements.
Wolves will fork out an initial £9m for the Netherlands youth international, with a further £4.5m to potentially then be paid to Liverpool in add-ons.
Liverpool remain in the market for a centre-back before the transfer window closes on 5th October and have made Schalke’s Ozan Kabak their priority.