Glen Johnson has agreed a four-year contract with Liverpool after completing his transfer from Portsmouth.
The England right-back moves to Anfield in a reported £17million deal.
Johnson, 24, becomes manager Rafael Benitez's first signing of the summer as he seeks to build a squad capable of going one better than last season's second-place finish in the Barclays Premier League.
Benitez has admitted he had to act quickly in a "crazy" market to secure the signing.
The Reds boss has already accepted he paid over the odds for the England international but stressed there were many factors which made the deal the right one for the club.
After after a summer which has already seen the £59million transfer of Kaka - and the expected £80million move of Cristiano Ronaldo - to Real Madrid, Benitez is happy with the outlay on his first signing of the summer.
"We knew the market was going to be difficult this summer and some of it has been crazy," said Benitez.
"Manchester City and Chelsea were there - they were making offers. We had to be quick and the club acted quickly.
"It was down to the player whether he chose us or City or Chelsea and he chose us.
"It was very clear from talking to him that he wanted to play for Liverpool."