The Serb joined Cardiff in January on a six-month loan deal and helped the team win promotion from the Championship, representing the club 14 times and even scoring once.
Football Insider are reporting that Cardiff were one of many teams who expressed an interest in signing Grujic, and it was the player's wish to return to Cardiff for the upcoming season. The 22-year-old has spoken to Cardiff City manager Neil Warnock about his desire to return to the club, and it appears as though everything has been put in place to arrange the deal.
Grujic has only fallen further down the pecking order at Anfield following the acquisitions of Naby Keita and Fabinho, and Liverpool are believed to want Grujic to continue his development at a Premier League club, meaning Cardiff City are the perfect option for all parties.
Since joining Liverpool in 2016 from Serbian side Red Star Belgrade, Grujic has made 14 appearances for the senior side, primarily in the centre of midfield. However, he possesses a variety of talents which have enabled him to play in either a more advanced attacking midfield role, or as a more defensive minded midfielder.
At Cardiff, he was mainly utilised as a defensive midfielder, with 11 of his 14 appearances coming in that position. Grujic was a regular in the Cardiff side during his spell there, and Liverpool were clearly happy with his progress at the club.
Cardiff have already secured the signings of Josh Murphy, Bobby Reid, Alex Smithies and Greg Cunningham as they prepare for a tough first season in the Premier League, and are clearly hoping that Grujic will be able to help the team perform well against tougher opposition.