The Spaniard, 21, moved to Anfield last summer in a £6.8m deal from Sevilla but managed only 135 minutes of Premier League action across nine substitute appearances last term.
Brendan Rodgers is keen for the youngster to continue his development back in his homeland and he looks set to join Malaga.
The two clubs are close to reaching an agreement and the transfer is expected to be confirmed this week.
