Anderson is a 17-year-old winger, joining the club's youth team at the start of last season. He is yet to make his senior debut, but Liverpool have been monitoring his progress in the juniors and the reserves. Their initial advances were rejected, but they have now come back with an improved offer and Anderson himself would prefer to make the move, so City have accepted.
The deal involves numerous add-ons that will benefit the Tigers in the long run if Anderson makes the step up to first team football at Liverpool, or if he is sold.
It also sees midfielder John Welsh joining City permanently. He signed on a season-long loan in September, but if personal terms are agreed then it will become a permanent move in the January transfer window. The England Under-21 international has played 15 times for City already.
If Anderson agrees personal terms with the Reds, he will join them on work experience until January and then complete the deal.