Liverpool have reached an agreement to sign 17-year-old centre-back Sepp van den Berg from PEC Zwolle for an initial £1.3m.
The Netherlands Under-19 international, who was also a target for Ajax, Bayern Munich and PSV Eindhoven, will officially join the Reds on 1 July.
The fee for Van den Berg - the Reds' first signing of the summer - could rise to £4.4m depending on add-ons.
Meanwhile, youth team player Rafael Camacho has joined Sporting for £5m.
The 19-year-old Portuguese, who made his first-team debut last season with substitute appearances in the FA Cup at Wolves and at home to Crystal Palace in the Premier League, had turned down the offer of a new contract.
Van den Berg made 15 appearances for PEC Zwolle in the Dutch top flight last season.
"It's just an amazing feeling," Van den Berg told the club website.
"It is, for me, the biggest club in the world and it's a dream come true. I am really excited.
"I've seen what kind of players from the academy grew into the first team here. Of course, the trainer (Jurgen Klopp) is a great guy and one of the reasons they are successful - and also one of the reasons I came here."
Liverpool compare Van den Berg to being at about the same level as Joe Gomez when they signed the defender for £3.5m from Charlton in June 2015.
England international Gomez was a key part of Liverpool's defence last season before injury curtailed his season.
The Anfield club see Van den Berg as a player for the long term and, although there is a belief he could be with the first team immediately, the focus initially would be on his development and integration.
Find all the latest football transfers on our dedicated page.