Sources in Brazil confirm the player completed his medical on Tuesday and a work permit has been acquired.

Cavalieri's agent, Juninho Parmigiani, told Brazilian media: "We will conclude everything soon. He has already had the necessary medical examinations, talked with some of his new team-mates and has been impressed by what Rafael Benitez had to say to him."

Palmeiras' sporting director, Toninho Cecilio added: "I have spoken and he has completed the examinations and is very happy. There are some clauses still being discussed but nothing that can block the deal."

Liverpool are expecting to recoup some of the fee by selling French keeper Charles Itandje to Galatasaray for £2million. They have already signed full-backs Philipp Degen and Andrea Dossena.

The Brazilian will be the club's number two keeper behind Jose Reina and his signing could signal the end of Scott Carson's Liverpool career.

The England international spent last season on loan with Aston Villa, but Martin O'Neill has been unwilling to meet Liverpool's asking price of around £10million.

Newly promoted Stoke have shown interest, but the fee would be a problem for the Potteries club with Liverpool boss Benitez now believed to be no longer interested in loaning out Carson again.

Benitez needs the money from a sale to help finance his other transfer activity.

The move of Peter Crouch to Portsmouth - for a fee of about £10million - should be confirmed in the next 24 hours.

Benitez's main priority before the squad head to their Swiss training camp on Sunday, is to tie up the deal to bring Gareth Barry to Anfield.

Villa are believed to have said they will accept £17million plus Irish full-back Steve Finnan, who they value at £1million. They also want the fee paid in two instalments, half now and the rest in 12 months.

But the two sides now appear close enough for the saga to be concluded by the weekend.