Personal terms are yet to be agreed between Caicedo and Liverpool, but are expected to be a formality, with a medical planned for Friday.
Chelsea had long been considered front-runners for Caicedo, but Liverpool remained in the discussions. This deal would break the club’s transfer record, which stands at £75m for Virgil van Dijk.
Liverpool are in need of a new defensive midfielder after Fabinho departed to Al Ittihad.
Chelsea have pursued Caicedo all summer after seeing Mason Mount, Mateo Kovacic, N’Golo Kante and Ruben Loftus-Cheek all leave the club. They are also interested in Southampton’s Romeo Lavia, who is also on Liverpool’s radar, and Tyler Adams of Leeds United.
(Photo: Tim Nwachukwu / Getty Images for Premier League)