According to the report, Los Blancos have put in a package of €35m (including €3m as add-ons) for the highly rated Croatian midfielder. Both the clubs were in discussion over the past few weeks, and late on Sunday the deal was reached for the player.
Liverpool were heavily interested in the midfielder, but the Reds were never ready to meet Inter’s €35m valuation.
Fabrizio Romano also adds that Mario Mamic, the agent of Kovacic, has agreed a package with the Spanish club, and the player is likely to sign contract today and undergo a medical later this week.
However, according to Gazzetta dello Sport (via Sport Witness) Liverpool still retain an interest and hold an outside chance to sign Kovacic, if the Reds increase their bid for the midfielder.
Liverpool have already offered €25m for Kovacic, and the Merseyside club need to shell out €3-5m more to sign the Croatian international.
Inter Milan are keen to sign Liverpool midfielder Lucas Leiva, and therefore a cash plus player swap deal can be a possibility.