The 18-year-old impressed for Rangers last season but now looks set to leave the Scottish side in a deal worth around £5million.
“We have agreed a deal in principle with Liverpool for the transfer of Danny Wilson,” said Rangers chief executive Martin Bain on the club’s official website.
“Liverpool’s offer will see the club receive £2million up front with add-ons linked to games played, taking the total value of the deal to £5million.”
“Danny was entering the final year of his contract with the club and had indicated that he felt it was in his interests to move on,” added Bain.
“Given that and the value of the offer from Liverpool, it was deemed appropriate to accept that offer given the player wanted to go.
“We are aware that with Kevin Thomson and Danny leaving the club in the last week that there is a need to add to the first team squad.
“Our efforts remain focused on doing that during this transfer window.
“We have been active in that regard with the resources that we have and we do recognise that we have to add to a squad that is light in numbers.”