Liverpool have been tracking Wilson for several months and are now set to complete the transfer after the teenager was pulled out of the Rangers squad that set off on a pre-season tour of Australia this evening.

Rangers chief executive Martin Bain told the club's official website: "We have agreed a deal in principle with Liverpool for the transfer of Danny Wilson.

"Liverpool's offer will see the club receive £2million up front with add-ons linked to games played, taking the total value of the deal to £5million."

Rangers had anticipated Wilson's departure towards the end of last season after the centre-back refused a new contract offer.

Liverpool`s interest initially failed to materialise as Rafael Benitez left the club but new manager Roy Hodgson has approved the deal and Wilson could join Joe Cole and his new team-mates at their Swiss training camp.

Bain, who last week oversaw the £2million sale of midfielder Kevin Thomson to Middlesbrough, added: "Danny was entering the final year of his contract with the club and had indicated that he felt it was in his interests to move on.

"Given that and the value of the offer from Liverpool, it was deemed appropriate to accept that offer given the player wanted to go.

"We are aware that with Kevin Thomson and Danny leaving the club in the last week that there is a need to add to the first team squad.

"Our efforts remain focused on doing that during this transfer window.

"We have been active in that regard with the resources that we have and we do recognise that we have to add to a squad that is light in numbers."

Wilson made his debut in October 2009 and went on to make 25 appearances, which included Champions League action.

The Scotland Under-19 international won both the PFA Scotland and Scottish Football Writers' young player of the year awards.

Wilson is the seventh first-team player to leave Ibrox this summer after Stevie Smith, DaMarcus Beasley, Nacho Novo, Kris Boyd and Thomson.

However, central defence is an area of relative strength for Rangers manager Walter Smith with Andy Webster returning from a season-long loan spell at Dundee United to join Davie Weir and Madjid Bougherra.

Algeria defender Bougherra, who suffered an injury-hit campaign last season, joined up with his team-mates at Glasgow Airport this afternoon after returning from World Cup duty.

Smith has not bought a player for almost two years amid financial problems at the club, although Rangers did have a substantial offer accepted for Burnley winger Chris Eagles last week, only for the player to reject a move.

Smith yesterday admitted he feared injuries and suspensions could make next season a struggle and the inexperienced nature of his first-team squad was evident today when youngsters Grant Adam, Andrew Shinnie, Jamie Ness and Gregg Wylde were among the party.

Rangers, who left full-back Sasa Papac behind for treatment on a minor knee injury, face Blackburn, Sydney and AEK Athens on their tour.