Liverpool have settled on a fee with Aston Villa.
Former Middlesbrough player Downing has been a prime summer target of Liverpool manager Kenny Dalglish, and bids of £12million and £15million had been refused prior to yesterday's breakthrough.
Alex McLeish seems to have replaced Downing with Wigan's Charles N'Zogbia, whom he came close to signing when in charge of Birmingham.
Alan Pardew also tried to sign N'Zogbia in January, and reports in recent day suggested the former Toon winger would "jump at the chance" to return to St James' Park.