Nunez, 22, is set to break Liverpool's transfer record, with the deal expected to be worth around €80 million plus €20m in add-ons. The agreement between the clubs has yet to be completed, but talks are progressing well.
The Uruguay forward, who joined Benfica from Almeria in the summer of 2020 for €24m, is under contract through June 2025 and has a €150m release clause.
Nunez attracted the attention of top European clubs after an impressive 2021-22 season in which he scored 34 goals in 41 appearances for Benfica.
Manchester United and Arsenal had also shown an interest in Nunez, while Premier League champions Manchester City considered signing him if they failed to acquire Erling Haaland.
ESPN reported on Thursday that United have prioritised the signing of a central midfielder rather than engaging in a battle with Liverpool for Nunez.
Nunez, who is on international duty with Uruguay, has remained tight-lipped about his future, but chose his strike at Liverpool on April 13 as the best goal of his career.
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