The 26-year-old has enjoyed a magnificent second season in the Premier League, scoring 9 league goals and contributing heavily to a free-flowing Saints attack.
Plaudits have been forthcoming for Lallana, who has also made his England debut and is expected to be named in Roy Hodgson's World Cup squad on Monday.
But the player who joined Southampton's centre of excellence at the age of 12 won't come cheap, especially as he is just one year into a five-year deal - while club legend Matt Le Tissier thinks he should stay on the south coast.
Nonetheless, according to the Liverpool Echo, Southampton's Player of the Year - also named in the PFA Team of the Year - is seen by Reds boss Rodgers as the perfect addition to compliment the likes of Luis Suarez, Daniel Sturridge and Raheem Sterling.
And the move for Lallana is likely to see the Reds forget their pursuit of Ukraine winger Yevhen Konoplyanka.
The Dnipro star was the Merseysiders' major target in January, but the Ukrainian club were unwilling to allow their prized asset to depart.
However, with Lallana preferred and Sterling having shone in the second half of the season, Konoplyanka is no longer a priority
England midfielder Adam Lallana will celebrate his call-up into Roy Hodgson’s World Cup squad by sealing a £20million move to Liverpool this week.
It is a massive boost for Liverpool manager Brendan Rodgers, whose side have an outside chance of winning their first title since 1990 when the Premier League season reaches its climax on Sunday.
Lallana celebrated his 26th birthday on Saturday by choosing to join the Rodgers revolution at Anfield despite interest from other clubs
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