Jurgen Klopp has agreed to become the new manager of Liverpool, Football Insider sources understand.

The Merseyside club have struck a deal today with the 48-year-old German and he is set to be appointed within the next 48 hours.

Klopp has agreed an £8million-a-year contract with Liverpool and will take his assistants Zelijko Buvac, who was his No2 at Borussia Dortmund, and Peter Krawietz with him to Anfield.

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Football Insider revealed on Tuesday that Liverpool had offered Klopp a contract to be the club’s next manager.

The Merseysiders have agreed to make the German the best-paid boss in the club’s history with the £8million-a-year deal to be paid to him and his backroom staff.

Klopp has indicated he will sign the contract, paving the way for him to be confirmed as the new Liverpool manager on Thursday and then unveiled on Friday.

It is understood that Klopp has agreed a three-year contract with the option of a fourth year during talks with Liverpool over the last week and the final terms have been settled today.

The cost of hiring Klopp, who is now the only man in the frame to become the new manager, is on top of the pay-off that Brendan Rodgers and his axed backroom team are set to receive.

Rodgers was in the second year of a four-year contract worth around £6million-a-year when he was axed by Liverpool on Sunday.

Handover: Jurgen Klopp will replace Brendan Rodgers as Liverpool boss

Handover: Jurgen Klopp will replace Brendan Rodgers as Liverpool boss

Klopp, whose CV includes two German league titles and a Champions League runners-up spot, will be even more expensive for Liverpool’s American owners Fenway Sports Group.

Football Insider revealed on Sunday that the former Dortmund manager was already in talks with the Liverpool hierarchy after being approached by the club last week.

Carlo Ancelotti was also on the radar of the Merseysiders but Klopp emerged as the strong favourite after doubts about the Italian’s interest in taking on what is required as a team in transition.