Fiorentina had seen two loan offers for Duncan rejected by the Reds, who felt that a loan move without an obligation to buy - and with no penalty clauses should the player not feature for the first team - served no objective.
Liverpool have always maintained their innocence, but now Tutto Mercato Web state that Duncan will travel to Florence for a medical ahead of signing a three-year contract with Fiorentina on Monday.
Liverpool remain intent on keeping the talented youngster at Anfield, but Duncan has made it clear that he wants to leave.
Liverpool vowed to "work privately with Duncan to find a resolution in the best interests of all involved".
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It is understood that Rubie was cut out of negotiations, which were handled by the striker's former agent Rob Segal, who is still registered as his intermediary.
Duncan scored 23 times in 26 games for Liverpool Under-18s last season.
He has yet to make a competitive appearance for the first team but did feature in pre-season, scoring in the 6-0 win at Tranmere.
Manager Jurgen Klopp launched a strong defence of their handling of Duncan, and all young players at the club, stressing how highly they rated him on Friday, but over the weekend Fiorentina returned with an improved offer and Liverpool's position altered.