The Reds have revealed they have agreed a deal "in principle" to sign the Ivorian, who has struggled for regular first-team opportunities at the Etihad Stadium this season
The Ivorian will move to Anfield when his current deal with Manchester City expires on July 1 after finding first-team football hard to come by at the Etihad Stadium.
The 32-year-old featured just 17 times for City this season following the emergence of young Serbian Matija Nastasic alongside Vincent Kompany in the heart of the defence.
Toure’s arrival will help fill the void left by Jamie Carragher, who retired earlier this month after spending his entire career at Anfield.
He brings a wealth of Premier League experience, including winners’ medals with both Arsenal and City, and formed part of the Gunners’ legendary ‘Invincibles’ side.
On the international stage Toure has represented the Ivory Coast over 100 times and played at two Word Cup finals, as well as captaining his country.