Fabinho is believed to have been the subject of a £40m bid from Nuno Espirito Santo's side and has been left out of the Reds' squad for their pre-season training camp in Germany as talks continue.
The former Monaco man is still contracted to Jurgen Klopp's side for another three years, but his form took a nosedive during Liverpool's challenging 2022-23 season.
Should the Reds be able to get a new number six through the doors in the coming weeks, Fabinho's departure will likely be given the green light as Klopp refreshes his midfield with young talent.
It is unclear if Liverpool have accepted Al-Ittihad's bid, but according to Fabrizio Romano, Fabinho has now agreed personal terms with the Saudi Pro League holders after holding talks with Espirito Santo.
Romano adds that the two clubs are now locked in discussions over the finer details of the move, such as the terms of Al-Ittihad's £40m payment, instalments and any potential add-ons.
Al-Ittihad have already poached one revered defensive midfielder from a Premier League Big Six club this term, signing ex-Chelsea man N'Golo Kante upon the expiration of his contract.
In addition, Ballon d'Or holder Karim Benzema left Real Madrid in order to join the Middle Eastern powerhouses, while Portuguese attacker Jota has arrived from Celtic.
Fabinho's potential switch to the Saudi Pro League would bring an end to a glittering five-year spell at Anfield, during which time he has scored 11 goals and set up 10 more in 219 games.
The Brazilian lynchpin has starred during the Reds' runs to Champions League and
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