According to Sky Sports, a fee of around £6 million has been agreed between the two teams, and now Enrique is travelling to Merseyside for his medical.
In a summer where Kenny Dalglish has strengthened the midfield with the signings of Charlie Adam, Jordan Henderson and Stewart Downing, one of the final positions where Liverpool really lacked strength was left-back.
But this signing will change all of that.
Enrique, who joined Newcastle after impressing at Villarreal in 2007, has been impressive in England, in both the Championship and the Premier League, known for his attacking runs from deep and linking up with players farther up field.
After the signing of Downing from Aston Villa, this means that Enrique and Downing can link up and be a constant threat on the left hand side.
Although Liverpool do have Fabio Aurelio, his injury problems have meant that they lack depth in the position, and often Glen Johnson, a natural right-back, has been forced to move to the left.
Will Jose Enrique be a success at Liverpool?
The move is also a good one for Enrique, who has aspirations to get into the Spanish national side and will need to play for a high profile club like Liverpool to get any chance of competing for the world champions.
Although Liverpool aren’t playing in Europe this season, they should be next season, and impressing at a top club like Liverpool would really catch the eye of national team manager Vicente del Bosque and give Enrique the opportunity to play ahead of former Villarreal team mate Joan Capdevilla.
Enrique will of course have to fight for his place at Liverpool, perhaps with Johnson should Dalglish put faith in Martin Kelly at right-back after some strong performances last season.
But Enrique is another exciting player to have joined Liverpool in 2011 and the first major defensive signing, and fans should be excited that players like Enrique can take the Reds into the Champions League.