The 54-year-old Israeli died after a motorbike accident in his homeland and his funeral scheduled for later on Wednesday.
As a mark of respect for the former left-back, who moved to Anfield in 1979 and scored the goal against Aston Villa which won Liverpool the first division title in 1980 before leaving a year later, both teams will wear black armbands.
"Liverpool Football Club would once again like to offer its condolences to Avi's family at this difficult time," said a club statement.
Source: PA
