LONDON (REUTERS) - Barcelona will sign Brazil midfielder Philippe Coutinho from Liverpool on a five-and-a-half-year contract, the two clubs said on Saturday (Jan 6).

British media reported that the Spanish club will pay around £142 million (S$250 million) for Coutinho, making it the third most expensive transfer in football history.

"Barcelona and Liverpool have reached an agreement for the transfer of Philippe Coutinho," the La Liga leaders said in a statement.

"The player will sign a contract for the rest of the season and five more and will have a release clause of €400 million.

"In the next few hours we will give details of the player's arrival and his presentation."

Liverpool confirmed the deal.

"Liverpool FC can confirm Philippe Coutinho will be leaving the club after a transfer agreement was reached with FC Barcelona, subject to medical and agreement of personal terms," the Premier League club said.

"The player now has permission to complete the usual formalities to conclude the transfer immediately."

Paris St Germain paid Barcelona €222 million for Brazilian forward Neymar in August and the French club will pay Monaco €180 million to sign Kylian Mbappe when he completes a loan spell this season.

Coutinho's fee will eclipse both the €105 million Barca paid Borussia Dortmund for France forward Ousmane Dembele in August and the £75 million that Liverpool received from Barcelona for Luis Suarez in 2014.

AS newspaper said Coutinho, 25, was expected to watch the La Liga leaders play Levante on Sunday in the presidential box at the Nou Camp.

The Brazilian has not played in Liverpool's last two games against Burnley in the Premier League and Everton in the FA Cup, with coach Juergen Klopp saying he has a thigh injury.

Coutinho did not travel with Liverpool to Dubai on Saturday for warm weather training.