Liverpool FC are hopeful of announcing Jürgen Klopp as the club's new manager by the end of the week, after talks progressed well with the German on Tuesday.

The Reds sacked previous boss Brendan Rodgers on Sunday just hours after a 1-1 draw at Everton as he paid the price for a below-par start to the season and Klopp was quickly identified as their No.1 choice replacement for the Northern Irishman.

Having hinted at interest in the job since leaving his beloved Borussia Dortmund in May, Klopp - who is currently on a sabbatical - has been offered the chance to take over at Anfield on a three-year deal, with Liverpool hoping to finalise the deal over the coming days after initially opening talks on Monday.

The charismatic 48-year-old's appointment seems to now be down to just the formalities after the club accepted his demands to be given the final say on all transfers, rather than him having to run his choices by the club's transfer committee. 

Nevertheless, he has no issues with being asked to lead under the club's existing structure - having done similarly in Germany, and he is expected to fly to England in the next 48 hours to finalise talks - having already spoken to former midfielder Dietmar Hamann about the city, the fans and the club in general.

With negotiations being led by chief executive Ian Ayre, who is also in contact with owners John W. Henry and Tom Werner and their president Mike Gordon, it is hoped that they can clinch an agreement without any hitches - meaning Klopp would have a full week before his first game, Tottenham Hotspur away on October 17.

Klopp the man for the Kop, FSG decide 

Ex-Real Madrid manager Carlo Ancelotti was another potential candidate that they were considering, but Klopp's sublime seven-year rebuilding job with Dortmund helped ensure he was their first-choice to replace the outgoing Rodgers.

Klopp, who transformed the Bundesliga outfit from a mid-table team to a title-winning side that matched Bayern Munich and forced Pep Guardiola to re-think his tactics, was the subject of interest from Fenway Sports Group back in 2010 and in 2012 - but he informed them that he didn't wish to leave Dortmund on both occasions, leading the Boston-based owners to approach Rodgers the second time around after he had helped Swansea City gain promotion.

But this time around, Klopp is willing to cut short his break from the game to help restore the Reds' fortunes, with the previous Northern Irish boss having left them in 10th after just 12 points from their opening eight games.

With him, Klopp is likely to bring two members of the backroom staff he had at Dortmund with him, in Zeljko Buvac and Peter Krawietz, replacing current assistant manager Sean O'Driscoll and coach Gary McAllister - who only arrived in the summer.

The two are set to take first-team training at Melwood for those who have not left for international duty, but are aware that they will be leaving their jobs for Dortmund's preferred staff and it is hoped that with a similar team to the one he had at Westfalenstadion, Klopp can bring about equal success to the Merseyside club - who are still craving a top-four finish and their first league title since 1990 in the not too distant future.

But there will be no changes in the Academy set-up, with Alex Inglethorpe - whom Rodgers promoted to head director in the summer - unlikely to be moved, unless the 43-year-old, a good friend of Rodgers, decides to leave by his own accord.

Reds to settle compensation fee with sacked Rodgers

Rodgers, meanwhile, has flown to Spain for a brief holiday prior to assessing his available options - with a number of posts in the Premier League up for grabs or likely to become available in the next few weeks.

Having been under contract until 2018 after signing an improved deal off the back of the successful 2013-14 season, he will engage in talks with the club over a compensation package - which could cost Liverpool approximately £7 million.

It is believed that with troubles elsewhere, namely at the likes of Chelsea, the Reds took action to ensure that Klopp wasn't snapped up by another rival club and so they have taken rapid action to approach Klopp - who could be announced by Friday.