Grabara, the 24-year-old Polish goalkeeper, will join Niko Kovac’s side on a long-term deal next summer, with the transfer agreed ahead of time.
His switch will come three years after swapping Anfield for FC Copenhagen, and lands his former club a sizeable windfall.
According to Wolfsburger Allgemeine Zeitung, Wolfsburg will pay €13.5 million for the stopper, which is around £11.6 million, with 20 percent going to Liverpool.
Liverpool will therefore receive £2.3 million when the transfer goes through, with it also reported that it could be brought forward to January.