Suarez who won the PFA Player of the Year award last season after scoring 31 league goals, signed for Liverpool from Ajax in 2011 for £22.7m, and had four years remaining on his current contract.
The Uruguay international is serving a four-month ban for biting Italy's Giorgio Chiellini during the World Cup.
"Luis is a very special talent and I thank him for the role he has played in the team in the past two years, during my time at Liverpool," manager Brendan Rodgers said.
"I hope you can all understand why I have made this decision," Suarez said. "This club did all they could to get me to stay, but playing and living in Spain, where my wife's family live, is a lifelong dream and ambition. I believe now the timing is right."
The fee is understood to be around £75m
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