Victory at the home of their Merseyside rivals would see Liverpool clinch a first league title in 30 years if Manchester City lose at home to Arsenal on June 17.
That had led to concerns that fans could congregate around both clubs’ grounds in the city in breach of coronavirus restrictions.
Goodison is less than a mile from Liverpool’s Anfield stadium.
However, a meeting between the council, police, clubs and fans’ groups on Wednesday agreed to allow the match to proceed in Liverpool rather than at a neutral venue.
“We are satisfied that the considerable evidence and guidance provided by the government, Everton and Liverpool football clubs, public health colleagues and Merseyside Police will ensure that the outstanding fixtures for the 2019/20 Premier League season can be safely and securely played at both Goodison Park and Anfield,” said Wendy Simon, deputy mayor of Liverpool, who chairs the Ground Safety Advisory Group.
Liverpool said further discussions this week will “provide clear and regular updates for supporters throughout this process”.
Should City not drop points against Arsenal or Burnley in their first two games back, Liverpool could win the title on home soil at Anfield against Crystal Palace on June 24.
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