According to reports from the influential Marca in Spain, the forward has agreed a switch to Anfield and will team up with the Reds in the new year.
The 22-year-old, who can also operate out wide, has become increasingly frustrated at his lack of regular action at the Nou Camp and has only started two La Liga games so far this season.
Coach Gerardo Martino has struggled to accommodate Tello in his talented side even with Lionel Messi out injured and the Spain international admitted earlier this season he would be forced to move on if he didn't get more game time.
"If I can't play for Barca then I'll consider leaving," he was quoted as saying in the autumn.
Tello remains under contract with Barca until 2018 so it could be he leaves initially on loan but the Reds may be tempted to offer around £7-10m in order to try and tempt the talented forward to the Premier League.
Tello, who has been linked with a move to England in the past, fits the profile of the sort of player Liverpool boss Brendan Rodgers likes to sign and he has made no secret of the fact he wants to strengthen his attacking options in the new year.