As Chelsea dithered, Liverpool topped Brighton’s valuation for the 21-year-old Ecuador international, who is now free to go for a medical.
Recall Liverpool lost midfielders Jordan Henderson and Fabinho to the Saudi Pro League during the current transfer window.
They snapped up Caicedo’s team-mate Alexis Mac Allister in June for £35m.
Reds manager, Jurgen Klopp confirmed the deal for Caicedo saying, “I got told I can confirm a deal with Brighton is agreed.
“What did change is that we are a club with not endless resources, so things we didn’t expect, a couple of things happening in the summer (Henderson and Fabinho), stuff like this.
“We didn’t think about that before the summer, to be honest and when it happened, we gave it a go and obviously, the club was really stretched there, to be honest.”
The fee agreed for Caicedo exceeds the £107 million Chelsea paid for Argentina midfielder Enzo Fernandez in January.
Caicedo joined Brighton from Ecuadorian side Independiente del Valle for £4m in February 2021 and only made his Premier League debut in April 2022.