LIVERPOOL -- Crystal Palace have agreed a fee with Liverpool for the transfer of defender Mamadou Sakho, a source has told ESPN FC.
Liverpool have given Sakho permission to discuss personal terms and undergo a medical at the South London club.
The Anfield club had been holding out for a fee of £30 million for the out-of-favour defender, but initial reports suggest the deal is worth £26m.
Liverpool rejected Palace's third offer of the summer, worth £25m, earlier this week.
But now Sakho is set to return to Selhurst Park, where he impressed in eight Premier League appearances on loan in the second half of last season.
The France international, who last played for Liverpool in April 2016, had no future at the club after disciplinary issues last season saw him banished from Jurgen Klopp's first-team setup.
He returned to Liverpool for preseason training as he recovered from a knee injury but was not included in the squad for any of the first five matches of the season.