The England Under-21 international will now undergo a medical and negotiate personal terms on the deal with the South Wales side, ending a three year stay on Merseyside.
Palace had initially hoped to take Shelvey on a season-long loan but with Liverpool only interested in a permanent deal they have made a decisive move to secure his services.
Shelvey was signed right at the very end of Rafa Benitez’s stint as Liverpool boss, but failed to turn his potential into a first team place at Anfield.
He made just 17 league starts in his 68 appearances for the club, scoring 7 goals.
He recently scored an absolute screamer of a goal for Liverpool’s U21 side against Manchester United at Old Trafford.
As Shelvey prepares to leave Liverpool for Swansea, netting the Reds a cool £4.3million profit on the outlay for him as a teenager, fans took to Twitter to discuss the news:
Ultimately Liverpool have younger attacking midfielders with more potential. And 'swapping' Luis Alberto for Shelvey makes sense
— Paul Tomkins (@paul_tomkins) July 2, 2013
Don't think we should sell Shelvey but loan him for a season
— jake (@jakeearth_) July 3, 2013
Good luck Shelvey
— Billy Liddell (@Liddellpool) July 2, 2013
Shelvey gone..good luck to him..I think he has the right desire to do well..I'm shocked they are selling him
— Leon Patterson (@leonJPatterson) July 3, 2013
Shelvey moves to Swans in a 6 mil deal – all the best lad.
— JFT96 (@MilkyAdair) July 3, 2013
Bye Shelvey! You have no composure whatsoever in the box only a smashing long shot on ya. YNWA @shelveyJ
— Zayan (@zuzumeister) July 3, 2013
If/when shelvey leaves, carra aside, without losing a first team player we've added 4 very good players to the squad for little or no money!
— scott williams (@strebby1) July 3, 2013
I not pushed about shelvey going, it might come back to bite us on d arse but then again it might not. #ProbablyWont
— Shane (@Conwaino) July 3, 2013
What are your thoughts on Jonjo Shelvey leaving Liverpool permanently? Let us know your thoughts in the comments below, or on Twitter @thisisanfield