The initial fee is £20m but add-ons could take this up to a total of £27m. Those add-ons are based on appearances and Liverpool winning trophies.
It had initially looked like any deal would be dependent on the future of Gini Wijnaldum, who is also in the final year of his Anfield contract, but Liverpool have decided to make their move now.
The Reds are finally making their move for the Spain international and are confident of reaching an agreement with the Bavarian giants
Liverpool has agreed an initial £20 million (€22m/$26m) deal with Bayern Munich for midfielder Thiago Alcantara. The Reds are stepping up their efforts to land the Spain international, with the fee potentially rising to £27m (€30m/$35m) in add-ons.
After months of speculation official contact has been made between the two clubs, with Liverpool now set to agree terms with the player, who is keen to move to Anfield.
