According to reports, Liverpool and Southampton have reached an agreement for the signing of Romeo Lavia after losing out on Caicedo.
Recent weeks have seen Jurgen Klopp's team linked with Moises Caicedo of Brighton and offered £111 million for his signature.
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However, Caicedo chose Chelsea over Liverpool who were also in the race for the Colombian signature.
Liverpool have now gone for their alternative target Lavia and have agreed on a fee with Southampton for his signature.
Lavia close to Liverpool switch
Liverpool have been monitoring the Belgian midfielder throughout the summer, but it now appears that a significant step has been made in the direction of completing the transfer before the impending transfer window deadline.
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According to Daily Mail, Southampton have accepted a fee worth £60 million from Liverpool for Romeo Lavia.
The Southampton teenager wowed a lot of clubs in his debut season in the Premier League the previous year, but the transaction is not yet finalised because Chelsea are also interested in signing him.
The Reds have had several attempts rejected for Lavia this summer but are not looking to give up on the deal.
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Jurgen Klopp has already added Dominik Szoboszlai and Alexis Mac Allister in the middle of the park but is still in the market for a midfielder.
But as reported by the Guardian, they have now accepted a deal for the midfielder that was about £10 million above their asking price.