THE Premier League club told Leipzig that they will trigger the player’s 70m euro (£60.1m) release clause.
The 22-year-old Hungary attacking midfielder helped Leipzig finish third in the Bundesliga and win the German Cup last season.
A meeting has taken between the representatives of Szoboszlai and Liverpool, who are looking to bolster their midfield.
The release clause for Szoboszlai, who has also been linked with Newcastle United, expires on Friday.
Szoboszlai made 31 appearances in the Bundesliga last season, scoring six goals and registering eight assists.
He signed from Austrian side Red Bull Salzburg in January 2021 and has since scored 20 goals and had 21 assists in 91 appearances.
One of those goals came in Leipzig’s 2-0 win against Eintracht Frankfurt on 3 June as they won the German Cup for the second season in a row.
Liverpool added to their midfield earlier in June with the signing of Argentina international Alexis Mac Allister for £35m from Brighton.
Reds boss Jurgen Klopp is looking to reinforce that area of the pitch with James Milner, Naby Keita and Alex Oxlade-Chamberlain leaving the club this summer.
Meanwhile, Liverpool forward Fabio Carvalho has moved in the other direction, joining Leipzig on a season-long loan.
Carvalho, 20, joined the Reds from Fulham last summer for an initial £5m on a five-year contract.
He made 21 appearances for Liverpool last season, including eight starts, and scored three goals.
“He will now continue his development and gain more experience in Germany with Leipzig,” a Liverpool statement read.
Spanish goalkeeper Adrian has also signed a new contract to remain with Liverpool for the 2023-24 campaign.
He has played 26 times since joining on a free transfer from West Ham in 2019.