It is believed that the deal is worth £5.1 million and after the player confirmed on his official page that he will complete the move today.
“On 4th January I will become a Liverpool player,” confirmed the 19-year-old in a post on Facebook.
His signing is the first for the new manager of Liverpool Jurgen Klopp this is seen as a statement on intent as the Germany born tactician looks to rebuild a team for Liverpool.
Grujic, 19, is expected to remain with Red Star Belgrade on loan until the end of the season before joining the Reds Next summer.
Liverpool were not alone in the chase of the player, they had to thump to CSKA Moscow and Zenith St Petersburg who reportedly offered more for his signature. It is widely reported that Klopp had to personally intervene before the player completed the deal.
The management of Red Star Belgrade confirmed the deal and released the statement.
“The board considered the offer and unanimously accepted the offer of the English giants.Liverpool will pay the money immediately, and the player will stay in Red Star until 01/07/2016. We wanted to respect the desire of the player’s father Marko Grujić remain until next summer at our club and we agreed to pay Liverpool €1m for the loan of six months.”