Liverpool's John Welsh is set for a permanent move to Hull in a deal that will see highly-rated teenager Paul Anderson move to Anfield. England Under-21 star Welsh, on loan at the KC Stadium, will seal the deal when the transfer window reopens in January.
Anderson's move seemed unlikely until the Reds improved their offer.
"The ideal scenario would be to keep Paul and sign John permanently as well, but it's not to be," said Hull chairman Adam Pearson.
Pearson said he was keen to avoid a situation where Anderson, 17, would be free to leave Hull when his scholarship runs out in the summer, with a fee then set by a tribunal.
"We don't want to lose Paul, but we didn't want to be in a situation whereby he moves when his scholarship expires and then we receive pittance for him at a tribunal," Pearson told PA Sport.
The Hull chief added that the Anderson deal included a "substantial" sell-on clause and other appearance-related payments, which could financially benefit the club should the player's status grow.
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