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Liverpool are on the brink of selling defender Tiago Ilori to Reading for £3.75million.

A fee has been agreed and the Reds have granted the 23-year-old centre-back permission to discuss personal terms and undergo a medical with the Championship outfit.

The transfer means that Liverpool will make a small profit on Ilori, who cost them £3.5million from Sporting Lisbon in the summer of 2013 in a deal which potentially could have risen to £7million. The club have also inserted a 25% sell-on clause in the agreed contract.

Reading sit third in the Championship and boss Jaap Stam wants Ilori to help bolster their promotion push.

The London-born Portugal Under-23s international was unable to establish himself at Anfield and made just three first-team appearances.

Ilori had loan spells at Granada, Bordeaux and Aston Villa prior to making his Liverpool debut against Exeter City in the FA Cup last January.

He failed to force his way into Jurgen Klopp's plans and spent the first half of this season playing for the Reds' under-23s.