The attacking midfielder was available on a free transfer after leaving Chelsea earlier this summer.

The Reds have announced on their official website that they’ve agreed personal terms with Cole and that the gifted midfielder will undergo a medical in the next 48 hours. The highly rated winger will sign a four-year deal with his new club upon completion of the medical.

Cole is Liverpool’s second signing of the summer transfer window. The Reds previously secured the services of Serbian international Milan Jovanovic from Belgian outfit Standard Liege on a free transfer.

The England international initially appeared to be on his way to Arsenal, while Tottenham Hotspur and Milan were also believed to be interested in signing Cole. The versatile midfielder will ply his trade at Anfield Road instead though in the 2010-’11 campaign.

Cole will be wearing the number 7 jersey at Liverpool, a number previously worn by Robbie Keane, who left the club for Tottenham Hotspur in January 2009.