Liverpool have reportedly reached an agreement in principle to sign Benfica and Argentina midfielder Enzo Fernandez.

The 21-year-old has become one of the most sought-after lynchpins in Europe after starring for club and country since making the move to the Estadio da Luz in the summer.

Fernandez made a name for himself at River Plate before joining Benfica in a €12m (£10.3m) deal, and he has since amassed three goals and five assists in 24 appearances for the Eagles in all tournaments.

The midfielder's form earned him a spot in the Argentina squad for the 2022 World Cup, and he has earned plenty of plaudits for his performances in Qatar, scoring one goal and setting up another in five matches.

Fernandez's exploits have helped the Copa America winners reach the semi-finals of the competition, and he will be expected to start when Argentina face Croatia in Tuesday's semi-final.

Liverpool have been regarded as one of the favourites to sign Fernandez in 2023, while Manchester United and Real Madrid are also said to be monitoring developments.

A recent report claimed that Liverpool had initiated contact with Benfica over the signing of the 21-year-old, who is under contract at Benfica until 2027 and could command a fee of €100m (£86m).

Now, La Capital claims that Liverpool have an agreement in principle in place to sign Fernandez at the end of the season, fending off interest from Man United and Manchester City in the process.

The report states that Liverpool 'did not hesitate' to make a move for Fernandez following his exploits in Qatar, and he will join the Anfield giants in the summer of 2023.

Fernandez won the Copa Sudamericana, Recopa Sudamericana and Argentinian top flight while plying his trade at River Plate, and he could be part of a significant midfield overhaul for the Reds next term.

Jurgen Klopp held off on making a big-money midfield signing in the most recent transfer window, but Arthur arrived on loan from Juventus amid a spate of injury problems in the middle of the park.

The Brazilian is still waiting for his Premier League debut after undergoing thigh surgery, though, while Naby Keita and Alex Oxlade-Chamberlain could both depart as free agents at the end of the season.

Liverpool were initially expected to prioritize a move for Borussia Dortmund midfielder Jude Bellingham, but it is unlikely that the Reds will pursue a £100m+ move for the England international should they fork out a hefty amount on the signing of Fernandez.

Real Madrid and Paris Saint-Germain are believed to be Liverpool's main rivals for the signing of Bellingham, and the Ligue 1 champions are understood to have made contact with Dortmund over a potential transfer.

Liverpool returned to action on Sunday with a 3-1 defeat to Lyon in their first of two games in the Dubai Super Cup, where they will also tackle AC Milan on Friday before returning to Merseyside.

Klopp's side return to competitive action against Manchester City in the EFL Cup fourth round on December 22 before a Boxing Day Premier League fixture away to Aston Villa. body check tags ::