According to the Athletic, an initial fee of around £700,000 has been agreed and the deal could rise to £1.8m if he achieves various performance-related add-ons. Pitaluga is now set to join the Premier League champions this summer.
He will sign an initial three-year deal at Anfield and has the option to extend his stay for an additional two years. Pitaluga will become Jurgen Klopp's second signing of the transfer window and certainly is one for the future.
Here is everything you need to know about the 17-year-old.
1. The Alisson Connection
The search for a new goalkeeper was never desperate, but as Loris Karius is due to permanently leave the club and Adrian is getting on, Liverpool need another option who will be good enough to eventually replace Alisson.
So why not choose someone he can immediately take under his wing? When the Brazilian returned home earlier this year, Alisson trained with his brother Muriel as well as Pitaluga at Fluminense.
One of Liverpool's goalkeeping coaches John Achterberg asked Alisson to feedback on the youngster's potential. It is believed Alisson and Pitaluga have been in touch since training together and the connection between the two will make Pitaluga's transition to England that little bit smoother.
2. Hasn't Actually Played a Professional Game Yet
He's about to sign for one of the biggest clubs in the world but Pitaluga hasn't actually played a professional game yet.
Fluminense are willing to sell Pitaluga because they actually don't need him. Currently he occupies the the fourth place goalkeeper position, behind Muriel, Marcos Felipe and João Lopes. The general consensus at Fluminense is that it takes longer for goalkeepers to mature and although they do see potential in Pitaluga, the club don't believe he will instantly improve the side.
Because he lacks experience, you'd assume he will go straight into Liverpool's academy and work his way through the ranks - maybe we'll see him feature for the Under-23s at some point this season.
3. Has Represented Brazil's Youth Sides
Though he's yet to make his professional debut, Pitaluga has certainly made an impact at academy level football.
He was part of the Under-17 Brazil side that won the 2019 FIFA World Cup - though he was a reserve for the tournament as compatriot Matheus Donelli took the number one spot.
Donelli went on to win the goalkeeper of the tournament award but Pitaluga's inclusion in the squad still shows that he has the potential to be a top stopper.
4. Has a German Passport
Pitaluga's transfer to Liverpool has been made easier by the fact that he has a German passport.
Like Alisson, Pitaluga is of German heritage.
Of course, he hasn't played for the senior Brazil side, so his international future hasn't been locked in just yet. He has favoured the Brazilian youth set-up so far but you never know if he'll choose to change his allegiance down the line.
5. He Likes to Use His Feet
Although we're yet to see much of him, if his performances in the Under-20 Copa São Paulo are anything to go by, you should expect him to be good with his feet.
In that competition, he showed how he can help his defences build up play. Being comfortable on the ball suits the modern game - he might not be on Manuel Neuer's level just yet, but showing that level of composure and confidence is an encouraging sign.
It is a difficult skill to perfect but if he does get it right, it will be useful for Liverpool.