Out-of-favour defender Tiago Ilori is expected to end an unsuccessful four-year spell at Liverpool this week by sealing a £3.75 million switch to Championship promotion hopefuls Reading.

The London-born Portuguese has made just three first-team appearances for the Reds since a transfer from Sporting CP, that with add-ons, could have risen to £7 million.

After underwhelming loan spells with Granada, Bordeaux and Aston Villa - Ilori finally made his debut for Liverpool against Exeter City a year ago under Jürgen Klopp, but has since spent the current campaign in the club's Under-23s squad.

The German therefore had no hesitation in agreeing to let the once highly-thought-of 23-year-old go, with Reading - managed by former Manchester United defender Jaap Stam - hopeful Ilori can aid the Royals' promotion push.

Reading currently sit third in the Championship, six points off of the automatic promotion places currently held by Brighton & Hove Albion and Newcastle United.

The towering centre-back has been given permission to discuss personal terms and undergo a medical, which according to reports close to Reading are at an advanced stage. He will sign a three-and-a-half year contract.

A fee has already been agreed, thought to be slightly more than the £3.5 million Liverpool initially paid for Ilori back in the summer of 2013, with none of the add-ons in that deal having been exercised due to Ilori's disappointing progress - or lack of - at Anfield.

The deal with Reading is thought to include a sell-on clause, with Liverpool clearly aware of the impact that Ilori could have in England's second division.

Defender to become first Liverpool player to leave during January window

Portugal U23 international Ilori's only appearances for the club all came in last season's FA Cup campaign and the defender will no doubt be pleased to move elsewhere for first-team football after being linked with various clubs across previous transfer windows.

He could even sign in time to be registered for Reading's trip to face Stam's former club United at Old Trafford in the third round of the FA Cup on Saturday afternoon.

Ilori will become the first Liverpool player to leave the club this month, with only a few incomings and outgoings expected - Mamadou Sakho another potential departure after his first-team exile.

Several players could follow on loan, with Academy prospect Pedro Chirivella linked with a temporary switch to Dutch side Go Ahead Eagles and the club having turned down a number of loan offers for midfielder Kevin Stewart.