The former Borussia Dortmund boss has been in talks with Liverpool's hierarchy - they have been led by Fenway Sports Group president Mike Gordon and Chief Executive Ian Ayre - and discussions are almost complete.
Klopp has agreed a deal of at least three years and he can expect to be paid a salary of more than £4million per season.
The German is flying in to Merseyside on a private jet to complete formalities ahead of an official announcement on Thursday afternoon and an unveiling at 10am on Friday morning.
Klopp is excited about the prospect of trying to restore Liverpool's fortunes but there are still a number of finer points to be ironed out before he can be formally announced.
It is anticipated Klopp will bring his long-term trusted assistants Zelkjo Buvac and Peter Krawietz with him to Merseyside.
That scenario is all the more likely given that Sean O'Driscoll and Gary McAllister, the coaches Brendan Rodgers brought in during the summer, were relieved of their positions on Thursday.
