The Reds hijacked Chelsea’s summer-long pursuit of Caicedo on Thursday night after they agreed a British record transfer fee of £110m with Brighton.
The midfielder is expected to be on Merseyside today to discuss personal terms and undergo a medical with Liverpool.
The Reds are trying to rush through a deal as the club are still wary of another offer from Chelsea.
Caicedo has been Chelsea’s top midfield target and the club have been chasing him all summer.
It has been claimed that the Blues could still come back and offer more money to Brighton for the Ecuador international.
The midfielder and his agent were in London last night and he has been preferring a move to Chelsea this summer.
Liverpool are well aware of the threat from Chelsea and are keen to complete the signing by the end of the day.
It remains to be seen whether Chelsea tabled another offer to provide another twist to the transfer saga surrounding Caicedo.
