
Wilson arrived on Merseyside for talks, after being pulled out of the Scottish giants' pre-season tour of Australia at the last moment.
Liverpool are confident they will land the highly-rated youngster and Rangers have already given the move their blessing.
Rangers chief executive Martin Bain said: "We have agreed a deal in principle with Liverpool for the transfer of Danny Wilson.
"Liverpool's offer will see the club receive £2million up front, with add-ons linked to games played taking the total value of the deal to £5million."
Former Kop chief Rafa Benitez was looking to sign Wilson earlier in the summer but the deal could not be pushed through with a possible takeover on the cards.
New boss Hodgson, though, fresh from snapping up Joe Cole on a four-year package worth £90,000 a week, appears to have had more success in bagging the teenager.
Rangers assistant boss Ally McCoist said: "Liverpool would have to accept they are signing potential - but it's a whole load of potential.
"He played an awful lot of games for us last season, probably more than we thought that he would. Yet he really handled himself superbly well.
"We had high hopes for Danny but Danny has high hopes for Danny as well and Liverpool can see the potential there.
"We'll wish him all the best if the deal is done."
this is a transfer target for rafael. but im unsure of this lad's quality. of course, i will still hope he will turn out good.
He has signed I suppose...
So he should be known as Rafa last gift to Pool?
18 years old and first team defender in Rangers.....now that is quite something. Interesting.
Not first team lah... he only played 14 matches out of 38 and some perhaps as a sub also... He should be good potential but than again, Scottish players are hard to gage... Remember Alan Hutton... He was really great for Rangers too then he came down south...
Jack Wilsher, same age as well seems like a better bet to make it...
he played 20 games, his defensive partner is another 40 years old fellow.
lol