Atletico Mineiro have agreed a deal to sign Allan from Liverpool, according to Globo Esporte.
The 22-year-old has never managed a single appearance for the Reds, following UK work permit issues reported by the Liverpool Echo last year.
He has spent numerous loan spells at various clubs, including Hertha Berlin, Eintracht Frankfurt and Fluminense.
It now looks as though Allan is finally tied down to a permanent deal away from Liverpool, with Mineiro agreeing a £2.5 million deal for the midfielder.
An announcement is due in the coming days.
Read Liverpool Verdict
Allan arrived at Liverpool as an exciting prospect back in 2015, having joined from Internacional.
He had the ability to be a success story at Anfield, but the aforementioned work permit problems, coupled with adjusting to life in England, put paid to his hopes.
He is more suited to being back in his homeland, where he can forge an impressive career for himself.
Allan’s form for Fluminense was good, as he shone in a defensive midfield role, enjoying a 90.4 percent pass accuracy and averaging 1.4 interceptions per game, according to WhoScored.
Mineiro clearly feel he is someone who can take the team forward.
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