Shaqiri has played 63 games for Liverpool following his £13.75 million move from Stoke City in the summer of 2018.
The 29-year-old impressed his fans in the Euro 2020, scoring three times as Switzerland made it to the quarter-finals and requested a move from Merseyside following the tournament.
The Switzerland international was looking forward to moving to another club earlier this summer in search of more regular game time and Liverpool sporting director Michael Edwards granted him his request following an improved offer from Lyon.
Olympique Lyonnais in its official statement said, “Olympique Lyonnais is pleased to have finally reached an agreement in principle with Liverpool for the transfer of the Swiss international midfielder, Xherdan Shaqiri, who was a key figure for his country at this summer’s European Championship.”
The statement further added, “Having played more than 400 matches in four different countries (Switzerland, Germany, Italy and England), and able to play on either flank or behind the strikers, Shaqiri all the characteristics desired by Peter Bosz.
“His arrival would further strengthen a midfield that already includes several international players, at both senior and U21 level.”
Liverpool will view the deal as good business as the initial offer from Lyon was just £4m which was declined.
Elliott is effectively viewed as Shaqiri’s replacement for the Premier League and Champions League for Liverpool, while the fellow teenager Kaide Gordon, who just like Elliott enjoyed a highly promising pre-season, is likely to get game time in the domestic cup competitions.
Elliott, who enjoyed a successful loan spell at Blackburn last season, impressed against Burnley on Saturday in his first Premier League start. He was heavily involved in Liverpool’s second goal, scored by Sadio Mané, and Jürgen Klopp views the midfielder as a key member of the first-team squad for this campaign.