West Ham United have agreed a £2m loan fee with Liverpool for Andy Carroll.
The season-long deal for the England striker could result in a £17m transfer at the end of the campaign, provided the Hammers stay in the Premier League.
However, it is thought the 23-year-old Carroll does not wish to leave Liverpool on a permanent basis.
The Reds, who paid a club-record fee of £35m for Carroll in January 2011, have already turned down Newcastle United's bid to re-sign the player.
Carroll has struggled since his big-money move to Liverpool, scoring just 11 goals in 56 appearances.
He now appears to be surplus to requirements at Anfield following the arrival of former Swansea boss Brendan Rodgers and Italian striker Fabio Borini from Roma.
Rodgers had said Liverpool would not consider a loan move for Carroll but now appears prepared to allow the player to link up with former Newcastle manager Sam Allardyce at Upton Park.
Carroll had also been linked with a transfer to Italian side AC Milan.
The striker began his career at Newcastle, spending a season on loan at Preston, before returning to the club and becoming top-scorer in the 2009-10 season as the Magpies returned to the Premier League.
Carroll collected a League Cup winner's medal with Liverpool last season, starting in the Wembley final against Cardiff City.