Liverpool have agreed a £25m deal for the Newcastle United midfielder Georginio Wijnaldum after talks which went into the early hours of Thursday.

The Holland international is due a medical on Merseyside after an agreement was reached which comprises a guaranteed £23m payment, plus a £1m appearance-related add-on and a final £1m due if Liverpool achieve specified targets.

Wijnaldum has had his heart set on a move to the Premier League following Newcastle’s relegation. He was made to travel to Doncaster for a friendly on Wednesday but once Liverpool met the asking price Newcastle decided it was best to allow him to leave.

Newcastle's manager, Rafael Benítez, now hopes to sign the midfielder Lucas Leiva from Liverpool. Benítez brought the Brazilian to Anfield in 2007.

There had been talks regarding one or more Liverpool players going to Newcastle as part of a deal for Wijnaldum but no agreement could be reached.

Wijnaldum has been at Newcastle for a year after joining for £14.5m from PSV Eindhoven last summer. He was the leading scorer last season with 11 goals, though it was not enough to prevent the club going down to the Championship.

Liverpool are likely to recoup at least half the money after accepting a £13m bid from Stoke City for Joe Allen.

Allen could be joined on his way out of Anfield by Jon Flanagan, who is mulling over a proposed loan move to Burnley.