Oxlade-Chamberlain, 24, had also been a target for Premier League champions Chelsea but it is believed Liverpool was always the player’s preferred destination.
Yesterday reports suggested Oxlade-Chamberlain had a medical on at St George’s Park where he is currently training with England ahead of their World Cup qualification double-header.
Chelsea had seemingly moved into pole position to land the former Southampton youngster after agreeing their own deal with Arsenal.
But Oxlade-Chamberlain appears to have his heart set on a move to Liverpool.
The loss of the midfielder will be seen as a blow by Arsenal boss Arsene Wenger, who has been adamant in recent weeks that he wants to keep the player at the Emirates Stadium.
Arsenal’s hand was weakened by the fact Oxlade-Chamberlain’s contract had less than a year to run and they have decided to cash in for a reported £40million rather than allow him to walk away for free in 2018.
Liverpool are also trying to conclude a club-record deal for Monaco midfielder Thomas Lemar before the transfer window closes.