Steven Gerrard is to begin his managerial career by taking charge of Liverpool U18s next season, according to Sky sources.
The 36-year-old, who has made no secret of his desire to enter full-time management, rejoined Liverpool in January to take up an academy coaching role at Kirkby.
Liverpool's longest-serving captain, who won 114 caps for England, called time on his playing career four months ago when he left MLS side LA Galaxy after 18 months with the club.
Following his retirement, the former England captain turned down the chance to become MK Dons manager last November following talks with chairman Pete Winkelman, saying the challenge to replace Karl Robinson at the League One side came "a bit too soon".
But now Gerrard, who made over 700 appearances for The Reds, is set to take the first step in his coaching career by taking charge of the Liverpool youngsters.
Liverpool U18s, currently managed by former Crewe Alexandra midfielder Neil Critchley, occupy third spot in the Premier League U18 North table.
Former Liverpool assistant boss Phil Thompson told Sky Sports News HQ Gerrard is ready for the next step in his Reds coaching career.
"He's been through all the levels so I would think it was the right time for Steven to step up," Thompson said.
The 63-year-old stressed the difference between the demands of playing and managing roles, adding: "Stevie does understand you've got to learn your trade. Sometimes you can't just go from being a player (to being a manager).
"He's been going around the teams there at Liverpool, helping out with everybody, (and) this is the next step in his development."
Thompson sees the former England skipper as having a long-term future with the Merseyside club that could one day see him become manager.
"I would like to think so," he said. "I think if you can start lower down it does help.
"Steven, hopefully he does have that potential to go on and maybe in quite a few years' time ... maybe in the next couple of years we'll see him coaching with the first team and then maybe a few years after that he'll be in contention
for the top job."