Tiago Ilori's Liverpool departure is expected to be announced later on Tuesday, according to Sky Sports presenter Dharmesh Sheth.
Centre-back Ilori has failed to make a Premier League appearance for the Reds, making just three FA Cup appearances under Jurgen Klopp last season.
Having signed for Liverpool back in 2013, Ilori has spent the majority of his Anfield stay on loan at other clubs, gaining experience at Granada, Bordeaux and Aston Villa.
"We expect an announcement on his move to Reading today.
"The fee is understand to be £3.75m."
Ilori signed for Liverpool for a reported £7m, with the Merseyside club now set to make a loss on the former Portugal U21 defender. Sheth also believes La Liga side Sevilla are favourites to sign out of favour France international Mamadou Sakho.
"Talks continue with Sevilla over Mamadou Sakho," Sheth continued.
"Liverpool want a permanent deal and are after £20m for the player."
Sakho has been playing for Liverpool's reserve side ever since he fell out with manager Jurgen Klopp during the summer. Sakho was sent home from Liverpool's pre-season tour of the USA after breaking specific rules regarding punctuality.
The signing of Ilori could help to bolster Reading's promotion push. The Championship are currently six points behind second place Newcastle United with a game in hand.