Midfielder heading to Humberside in search of first-team football
The 23-year-old signed a new five-year contract extension with the Merseyside club in November but is set to leave the club in search of first-team football after his opportunities became limited last season.
Stewart made nine appearances for the first-team last season and was reportedly the subject of interest from Premier League and Championship clubs in January but manager Jürgen Klopp rejected all advances.
With Liverpool's interest in RB Leipzig midfielder Naby Keita potentially adding to the ranks in the centre of the park, Stewart's imminent transfer affords him the chance to gain some much needed experience in order to prevent his career from stagnating.
Hull meanwhile have lost Tom Huddlestone and Alfred N'Diaye in the midfield area following last season's relegation from the Premier League, with Huddlestone leaving for fellow Championship club Derby County while loanee N'Diaye returned to parent club Villarreal.
Stewart has experienced all but one tier of the Football League
The move will be Stewart's first foray into the Championship although he does have experience of League One and League Two after spending time on loan with Crewe Alexandra, Cheltenham Town, Burton Albion and Swindon Town in past seasons.
The defensive midfielder began his career with Tottenham Hotspur although he did not make a single first-team appearance for the club during his two seasons there.
A move to Liverpool followed after his contract in North London expired, and he went on to make 20 appearances for the first-team including his debut in an FA Cup tie against Exeter City in January 2016.
Hull left-back Andrew Robertson is set to go the other way in the immediate future, for a fee rumoured to be around £10 million.