"The deal with the player and his club is almost done and I am really pleased he is coming to us," said the Liverpool boss.
"He is the captain of the Brazil under-20 side and won the Golden Boot in his country last year so we know he has quality and we also believe he has the mentality and the character you need to do well in England.
"He can play as a holding midfielder but he can also get from box to box and so I am looking forward to seeing him score goals for Liverpool in the future.
"A lot of clubs in England and Spain were asking about him but our scouting department has again been working really hard and it's good that he's coming to us.
"He will arrive in the summer and then will start adapting to football in this country. We know it can take time but I think he has the quality to be putting pressure on Gerrard, Mascherano, Xabi and Sissoko next season."