Liverpool have agreed a deal to sell 19-year-old striker Jerome Sinclair to Watford for a fee believed to be in the region of £4million.
The Birmingham-born attacker has reached the end of his contract at Anfield, but Liverpool have been in discussions with Watford to set compensation for the player given that he is under the age of 24.
An agreement has now been reached that sees Sinclair join the Hornets on a five-year contract.
Sinclair, who became the youngest player ever to play for Liverpool when he made his senior debut at the age of 16 years and six days in a 1-1 draw against Chelsea, scored one goal in five appearances for the Reds.
A statement on the official Liverpool website read: "Following amicable and professional discussions between Watford and Liverpool, the clubs have reached an agreement regarding a transfer.
"Liverpool would like to wish Jerome all the best in his new career with Watford."