Liverpool had been linked to the Swiss star within the past month.
Wolfsburg's Ricardo Rodriguez in action with Manchester United's Jesse Lingard
Liverpool are set to miss out on highly rated Switzerland left-back Ricardo Rodriguez.
Fox Sports Italy report AC Milan have agreed a fee of 15 million Euros plus three million in bonuses with Wolfsburg for the transfer of the defender.
Rodriguez is set to undergo a medical with Milan this Wednesday before completing his transfer.
Ricardo Rodriguez scores from the penalty spot
It was claimed Liverpool had sent scouts to watch him in action, although AC Milan's interest was cited at the time as a threat to the Premier League side's chances of doing a deal.
Liverpool need a new left-back with Alberto Moreno unconvincing and James Milner only a stop gap.
Rodriguez has been a consistently impressive performer for Wolfsburg for several seasons now and it is surprising he has not been snapped up previously by interested clubs.
The 24-year-old can play in central defence as well as at left-back and would have been ideal for Jurgen Klopp's side.
Liverpool manager Jurgen Klopp