The 18-year-old attacking midfielder has emerged as a serious transfer target for the Reds who are looking to table an offer.
Liverpool scouts are believed to have watched the exciting playmaker over the last few months and sources in Germany feel a deal is in the offing.
Brendan Rodgers' offer is expected to be made before the weekend with the club hopeful it will be enough for Schalke to part with one of their prized young assets.
Under the terms of the deal Schalke will receive bonus payments if Meyer contributes to Liverpool winning trophies as well as a percentage of any sell-on fee.
Meyer is more likely to come to England this time around given Rodgers' willingness to give youngsters a chance if they are good enough and by all accounts the German certainly is.
He previously snubbed an offer from Chelsea last January fearing his first-team opportunities would be greatly restricted.
In light of Liverpool's need for a more orthodox number 10 to provide competition for Philippe Coutinho, Meyer could well be that player.
Much will depend on whether Adam Lallana joins the Reds as he has been earmarked for the role, although he will also be used out on the left too.
Lallana would at first glance appear more suited to the way in which Liverpool play but Meyer's youthfulness may count for more in terms of his high energy, a quality which is crucial for Rodgers to get the best out of his team.