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Spanish midfielder Thiago Alcantara signed a four-year contract with Liverpool FC from Bayern Munich for £ 20m.
The cost of moving to Alcantara, 29, could be as high as 25 million pounds, with the bonuses.
“It feels great. I have been waiting for this moment for a long time and I am very happy to be here,” said the player.
Thiago will wear jersey number six, becoming the club’s second summer contract after Greek left-back Kostas Tsimikas.
Alcantara will be eligible to play Chelsea on the latter’s court on Sunday.
Thiago won the Spanish League twice with Barcelona, before moving to Bayern in 2013, where he won the German League seven times and the Champions League last August.
His arrival at Anfield ended weeks of speculation over whether the Premier League champions would sign a special summer contract.
The £ 20 million will be paid in installments over the duration of the deal, with up to an additional £ 5 million paid based on the team’s success in the English Premier League and Champions League, as well as individual awards Thiago receives. .
Liverpool manager Jurgen Klopp said: “This is very impressive, I am very happy that it was so successful in the end.”
“I know everyone at Bayern wanted to keep him. This is normal and understandable because he played an important role, also last season.”
“He was ready for a new challenge and decided to join us.”
“I have to adapt to the team as fast as I can. I will help the team defensively, offensively and also mentally,” added Thiago.
“When we talk about all the players, he has a lot of respect for all of them,” Klopp said. “He admires them.”
“We played Munich in the Champions League two years ago so he knows what kind of machines we can be and he wanted to be a part of that.”
Liverpool meanwhile are aiming for another addition, Wolverhampton striker Diogo Jota, who missed the last game that saw his team lose to Stoke on Thursday.
After the match, Wolverhampton coach Nuno Espirito Santo repeatedly refused to mention the reason for the 23-year-old Portuguese’s absence.
But now it appears that the player, who previously played for both Porto and Atlético de Madrid, is being the target of Klopp’s side in a deal that could be worth up to 35 million pounds.
Jota joined Wolverhampton on loan for the 2017-2018 season, to sign a permanent contract for £ 12.8m in 2018.
He played 131 games and scored 44 goals, including a hat-trick in last season’s Europa League victories against Besiktas and Espanyol.