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."