The 39-year-old is one of Europe’s most coveted coaches, having led Sporting to the league title in 2021 and guided the club to three further trophies in his time in the Portuguese capital.
Amorim, who was a leading candidate to replace Graham Potter at Chelsea last April, has a release clause of around £12m in his contract.
Liverpool had hoped to appoint Bayer Leverkusen boss Xabi Alonso following Klopp’s shock announcement in January that he would be stepping down.
But the club have moved quickly to secure Amorim, who had attracted interest from Bayern Munich.
According to Sky Germany, Amorim has held a series of positive talks with Liverpool’s board and an agreement has now been reached in principle for him to take charge this summer.
It’s claimed a three-year deal will be signed, seeing Amroim remain at Anfield until at least 2027.
While a large compensation package is due to Sporting, the finances are expected to be straightforward.
Liverpool had been battling the likes of Bayern and Barcelona to appoint a new manager.
Klopp’s decision in January sent shockwaves through European football, with the German stepping down after nine years on Merseyside.
The Reds are joint-top of the Premier League, albeit behind Arsenal on goal difference with seven matches remaining.
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