Rafael Benitez is poised to enter talks with Liverpool about the vacant manager's job within the next 48 hours, according to his agent.
Manuel Garcia Quilon, who represents Benitez, insisted no negotiations had so far taken place with Liverpool.
But he told BBC Sport that there would be developments "in the next few days".
Benitez, 44, is serving a notice period after quitting Valencia on 1 June and is favourite to take over at Anfield following Gerard Houllier's sacking.
Benitez has already been replaced at Valencia, by the former Chelsea manager Claudio Ranieri.
Valencia appoint Ranieri
Other European clubs are reportedly interested in the sought-after Spaniard, who won the Primera Liga title and Uefa Cup with Valencia this season.
But Benitez, who rejected the offer of a two-year deal at the Spanish club, is believed to want to test himself in the Premiership.
Liverpool had been waiting for chief executive Rick Parry to return from holiday to finalise details concerning the appointment of a new manager.
Now that Parry is back on Merseyside, the club are expected to make an announcement shortly on who will replace Houllier.
Benitez is also said to have the backing of Liverpool striker Michael Owen, who has long admired the Spaniard's style of play.