The Merseyside club have already had two bids of 12million and 15million rejected by Villa, but their latest offer, believed to be in the region of 20million, proved too much to resist after the player submitted a transfer request.

A statement on the club's official website read: "Liverpool FC tonight announced they had agreed a fee with Aston Villa for the transfer of Stewart Downing.

"Liverpool have now been granted permission to discuss personal terms with the player and arrange a medical."

Should the move go through, Downing will become Liverpool's third signing of the summer following the captures of Jordan Henderson and Charlie Adam.

However, the news will be a big blow for Villa manager Alex McLeish, who had previously insisted the player was not for sale. The club have already sold fellow England international Ashley Young to Manchester United and are yet to make any new signings, but chief executive Paul Faulkner says any money from a possible transfer will be used to bring in new blood.

He said: "We believe there are replacements available in the market who can strengthen our squad."