Al-Ettifaq agree on a deal worth £12m plus add-ons for Jordan Henderson
Henderson travelled to Germany with Liverpool for their training camp but was not involved in their first pre-season game against Karlsruher.
The England midfielder, 33, has two years left on his contract at Anfield.
Former Liverpool captain Steven Gerrard was recently appointed as manager of Al-Ettifaq.
The agreement for Henderson follows Liverpool receiving a £40m offer from Al-Ittihad for fellow midfielder Fabinho last Friday.
Unlike Henderson, the 29-year-old Brazil international did not travel to Germany while his future is resolved.
A number of high-profile players have moved to Saudi Arabia this summer, including former Real Madrid striker Karim Benzema and ex-Chelsea midfielder N'Golo Kante.
Former Liverpool forward Roberto Firmino joined Al-Ahli after his Anfield contract expired, and Manchester City winger Riyad Mahrez has also been linked with the club.
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