Reds boss Brendan Rodgers revealed after Thursday’s Europa League win over Hearts that Sahin was close to making a loan switch to Anfield.
A number of clubs, including Arsenal have been chasing Sahin, but Rodgers has won the race for the highly-rated Turkish international.
Sahin joined Real last summer from Borussia Dortmund, but he struggled to establish himself in Jose Mourinho’s star-studded side.
Mourinho is happy to loan out Sahin as he wants him to get some regular first-team action under his belt.
Sahin is now set to undergo a medical at Anfield and if he comes through that he will become Rodgers’ fourth signing of the summer.