The Reds confirmed the news on the eve of their first Premier League game of the season against Southampton.
Liverpool have completed the signing of Sevilla left-back Alberto Moreno, who becomes Brendan Rodgers' eighth signing of the summer.
The 22-year-old will not be eligible for tomorrow's match as his signing did not go through in time.
Moreno told Liverpoolfc.com: "In my view, Liverpool are the best club in England and I couldn't waste an opportunity to come and play for them.
"I spoke with Xabi Alonso, Pepe Reina and Alvaro Arbeloa and they told me this is a spectacular club whose fans follow it in a very special way.
"They all told me I can grow a lot here as a footballer as this is a massive club. I'm very happy to be joining a club as big as Liverpool. I hope to give my best and do all I can to help."
