By North-west correspondent Alex Stevens

Marko Grujic will undergo a Liverpool medical before re-joining Red Star Belgrade on loan for the rest of the season, Football Insider sources understand.

The Merseysiders have finalised a deal for central midfielder Grujic to move permanently to Anfield in a £5million deal.

A Liverpool source has told Football Insider that the 19-year-old will head to England to undergo medical tests to complete the formalities of the move.

On Wednesday, a statement on Red Star’s website confirmed the Serbia Under-21 international will sign on a permanent deal, be loaned back to Red Star for the rest of the season and then move permanently to Merseyside next summer.

“The board accepted the offer from Liverpool to pay the money immediately and the player to stay at Red Star until July 2016,” the statement read. “The club want to thank Marko Grujic for 10 years of service but the financial situation dictates the decision.”

Liverpool chief executive Ian Ayre agreed the terms of the signing when he flew to Belgrade at the end of last week.

Hot pursuit: Liverpool are closing in on their first signing of the Klopp era

Hot pursuit: Liverpool are closing in on their first signing of the Klopp era

Grujic is regarded as one of the most promising young talents in European football and has been targeted by a number of elite clubs including Chelsea, Manchester United and Inter Milan.

Cash-strapped Serbian Super League leaders Red Star admitted their financial position dictated they cash in on the 6ft 3in midfielder, who has scored a creditable five goals in 21 league matches this season.

The sale of Marko Grujic would enable Red Star to pay staff wages with the club reportedly needing around £2m to stave off current debts.

He travelled with teammates to Podgorica in Montenegro where they are on a break and has asked media to leave him alone as “he needs peace to rest from everything that happened in 2015”.