LONDON, United Kingdom, Aug 31- Liverpool have agreed to sell defender Mamadou Sakho to Crystal Palace for 3.5bn (£26m), according to Sky sources.
It is understood the 27-year-old was on his way to London on Thursday evening for a medical.
The France international was a big hit when he was loaned to the Eagles last season and they have been attempting to land him on a permanent basis throughout the summer.
Sky Sports News reported on Tuesday that Palace placed a third bid worth £22m, plus £3m in add-ons, but Liverpool remained unhappy as they valued Sakho at £30m.
With four hours left on Deadline Day, news emerged that the Reds had accepted a fee of £24m plus £2m in add-ons.
Palace have made a miserable start to the Premier League campaign under new boss Frank de Boer and are without a point in their three matches.
Sakho played a key role as they secured Premier League survival under Sam Allardyce towards the end of last season.
He joined Liverpool in 2013 for £18m after a five-year spell at Paris-Saint Germain.
Watch the new signings back in Premier League action from September 9 as Man City host Liverpool live on Sky Sports Premier League at 12.30pm.