The 22-year-old look set to head to St James’ Park after Newcastle reportedly agreed to a €30 million (£26 million) deal with Osasuna.
Liverpool then swooped in to hijack the deal, activating Munoz’s €40m (£35m) release clause and once again breaking Newcastle hearts.
Andoni Iraola’s side have now confirmed the deal, subject to a successful work permit application and international clearance.
Munoz enjoyed a breakout season at Osasuna having joined from Real Madrid last summer, scoring seven goals and providing five assists in his 36 games.
The winger capped his Spain debut against Serbia back in March with a goal and is currently with the squad for the 2026 World Cup.