The forward, who plays for the Reds' U-23 side, signed a two-and-a-half year deal back in December 2015, becoming the first player of Indian heritage to play for them.
Dhanda, who moved to the Premier League side's academy from West Bromwich Albion in July 2013, signed professional terms with the club in 2015 and had since been playing for their Under-23 side.
Born in Birmingham, the 19-year-old's contract with the Merseyside outfit comes to an end in the summer and the forward has been working on a move to the Welsh club, as they look to get a jump on life in the Championship after getting relegated from the Premier League.
Once a member of England's U-17 team, he won the award in the up-and-coming player category at the Asian Football Awards in 2013. Ironically, he had also scored against the Swans while playing for Liverpool's U-23 side.
Yan Dhanda is set to join Swansea— Billy Liddell (@Liddellpool) May 15, 2018
The teenager has done well for the Reds, having scored the last-minute winner as they defeated Manchester City. He also grabbed a brace as his side thrashed Chelsea 5-1.
Though he was offered fresh terms by Liverpool, as per Goal, Yan Dhanda rejected the offer and decided to move in search of more first-team opportunities. He is expected to cost Swansea £100,000.