The 22-year-old is enjoying a growing reputation in Germany and has been heavily linked with a move to the Premier League in the past.
The likes of Chelsea, Tottenham Hotspur and Arsenal have all been credited with an interest in Goretzka, but Spanish media outlet Don Balon reports that Liverpool have beaten their Premier League rivals to his signature.
The Germany international will reportedly join the Reds in January, with the player having turned down the chance to move to Barcelona due to being unimpressed with their contract offer.
Any deal to sign Goretzka could open the door for Philippe Coutinho to leave Anfield for Barcelona or Paris Saint-Germain, though.
Goretzka has scored four goals in nine Bundesliga appearances for Schalke so far this season.