Liverpool are set to complete the signing of the Brazil forward Roberto Firmino, as talks with Hoffenheim edge closer to reaching agreement over a fee that could potentially rise as high as £29m.

After moving to Germany from the Brazilian second-tier club Figueirense, Firmino has spent the past four-and-a-half years in the Bundesliga, scoring 35 goals in 140 appearances, including seven league goals last season as Hoffenheim finished eighth.

Liverpool are likely to have to pay an initial £25m with further fees taking that total nearer £29m, which would make it the second largest transfer in their history – behind the £35m signing of Andy Carroll. They have had a delegation in Chile watching the 23-year-old at the Copa América, where he scored in Brazil’s 2-1 win over Venezuela on Sunday.

The player is intent on continuing his career in the Premier League, with his agent, Roger Wittmann, confirming as much earlier this month, when Manchester United were mooted as being his client’s principal suitors. “All I can say is that he’s moving to England,” he told Germany’s Bild newspaper at the time.

Liverpool have taken steps to smooth the third-party ownership issues that would have prevented Firmino moving to England. While doubt continues to surround Raheem Sterling’s future at Anfield, Firmino’s arrival would go some way to demonstrate Fenway Sports Group’s ambitions for the campaign ahead. The forward can lead the line as a lone striker but will more naturally operate as a No10, a creator as well as scorer. He has also demonstrated a willingness to track back and work in defensive areas which will appeal to Brendan Rodgers, after a season of frustration with last summer’s £16m signing, Mario Balotelli.

The Italian started only 14 games in all competitions, scoring four goals and was publicly criticised by Rodgers. Liverpool would allow the striker to leave, but his agent, Mino Raiola, said in May that Balotelli would “definitely stay” at the club.

Firmino is expected to sign a five-year contract at Anfield, and would join Danny Ings, Adam Bogdan, James Milner and Joe Gomez in moving to the Merseyside club this summer.