The Portuguese is set to sign a five-year contract with the Premier League champions, becoming their third signing of the summer following the acquisitions of Kostas Tsimikas and Thiago Alcantara.
The Reds will pay at least £41m for the 23-year-old, with a further £4m in add-ons relating to league and European success also written into the deal.
It is understood Wolves’ willingness to accept just less than 10 per cent of the guaranteed fee over the next 12 months played a key part in the deal getting over the line.
That figure is set to be largely offset by Ki-Jana Hoever’s imminent move in the opposite direction - an arrangement which suits both parties in the post-Covid market.
Jota topped a three-man shortlist drawn up as the Reds searched for suitable back-up to Sadio Mane and Mohamed Salah this summer.
Watford forward Ismaila Sarr also featured, but the Hornets’ refusal to budge on a valuation starting at £40m and surpassing the £50m that took Richarlison to Everton in 2018 put an end to any hopes of an agreement.
Liverpool believe they are getting the better deal in signing a player who has long been admired by Jurgen Klopp and his coaching staff.
Jota’s two-footedness, tactical flexibility and work-rate mean he is thought to be an ideal fit for the Reds, who believe they can develop him into a future star.
Pep Lijnders also received glowing reviews of the player’s character from his contacts in Portugal - a key consideration for any addition to what is a tight-knit dressing room.
Jota has scored 16 goals in 67 Premier League appearances for Wolves since helping them seal promotion from the Championship.