Having delayed a potential move to Bristol City, who had a £2.5 millin offer accepted before Norwich came in for him, Canos waited for other offers and responded well to the Canaries' approach.
The Championship outfit have been on the look-out for a replacement for Nathan Redmond, who joined Southampton for £11 million last month to replace Sadio Mane before his £30 million move to Anfield.
And they view the Spanish Under-19 international as the ideal candidate, having discussed personal terms with the player after already reaching a verbal agreement with Jürgen Klopp's side.
It is understood that although the proposed move will see Liverpool earn £2.5 million as an upfront fee - Canos' exit will also cost Norwich a further £2 million over the next few seasons in appearance-related additional payments.
In order to protect themselves, in the event that the 19-year-old reaches the potential he has showcased since joining from Barcelona's academy in 2013, Liverpool have also added buy-back and sell-on clauses into the deal.
Highly-rated youngster Canos set to seal Norwich switch
Though neither clause's specifics have been revealed, it would mean Liverpool are due a certain percentage of any fee between Canos' next club - should there be one - after Norwich.
That, or they will have the opportunity to re-sign the youngster themselves at a pre-agreed price, lower than his potential market value.
Canos' move comes just two months after he continued his development with his first-team debut for the Reds, coming off the bench in their final Premier League game of the season at West Bromwich Albion in late May.
But having recently entered the final year of his contract on Merseyside, rejecting Liverpool's offer due to a disagreement over his proposed wages, the club are now keen to bank as much as they can for Canos rather than risk losing him for next to nothing next summer.
It follows a few months in which they sold Jerome Sinclair to Watford for around £4 million, having lost Jordan Rossiter to Rangers in a deal where they recouped just £250,000 in compensation for the Scouse midfielder.
Canos, who is also said to be looking for more regular game time at a senior level after impressing on a season-long loan at Brentford last term, might have had to go to independent tribunal next summer had Liverpool not sold him this summer.
That almost happened with Sinclair's move to Watford, the two clubs having been locked in talks over the player's value since last year. But the Premier League outfits reached an agreement to ensure a tribunal, to decide the player's value, was not needed.
Klopp keen to get number of Reds sold as he looks to minimise first-team squad
Meanwhile, Academy goalkeeper Ryan Fulton has sealed a season-long loan to League One side Chesterfield for the 2016-17 campaign.
The highly-rated 20-year-old, who spent time at Portsmouth last season making 13 appearances, has joined up with Danny Wilson's men on their pre-season tour of Hungary.
A youth international for Scotland, Fulton is expected to start the season in goal for Chesterfield with their usual No.1 Tommy Lee likely to miss the first few weeks after recent shoulder surgery.
His exit, according to reports, will not be the only of Liverpool's squad over the coming weeks Klopp, who spoke about the need to reduce the size of his first-team crop after their first friendly at Tranmere, could see a number of players leave in the coming weeks.
Jordon Ibe is one of several senior players in contention to leave. He missed the Reds' friendly win over Tranmere on Friday, having been given permission to travel down to Bournemouth after their £15 million for the winger was accepted.
It is now up to Ibe to decide whether to sign for the South Coast club, with more minutes on offer under his countryman Eddie Howe, or remain on Merseyside and look to regain his place under Klopp.
The 20-year-old, who started just 16 of his 35 appearances in all competitions last season, is likely to opt for the former having fallen out of favour in just his first full campaign at the club.
Christian Benteke is also said to be edging closer towards the exit door as he nears a move to Crystal Palace. The two clubs haven't yet reached an agreement, Liverpool having knocked back a £31.5 million offer which incorporated a number of add-ons.
But the likelihood of some of those fees needing to ever be paid came into question, with the Reds looking for a higher up front fee for the striker who is still on holiday after featuring for Belgium at the Euros.
They feel they can recoup almost all of the £32.5 million outlay they spent on Benteke just 12 months ago, given the rising inflation of the transfer market - particularly in deals between two English top-flight clubs.
Joe Allen and Martin Skrtel are also expected to leave the club, with Skrtel in talks with Turkish outfit Fenerbahce to end his eight-and-a-half year stay with Liverpool.