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Uruguay forward Luis Suarez completed his move to five-times European champions Liverpool from Ajax Amsterdam on Monday, the Premier League club said.
"Luis Suarez has today completed his transfer from Ajax to Liverpool FC and signed a five-and-a-half-year-deal that will keep him at Anfield until 2016," a statement said.
"The deal was subject to the completion of a medical, which the player has now passed."
Liverpool, who have also agreed to sign Newcastle United striker Andy Carroll, said the fee was "up to" 26.5 million euros (£23 million).
Suarez, 24, the current Dutch Footballer of the Year, will take the number seven shirt worn by some of Liverpool's most revered players including Kevin Keegan and current manager Kenny Dalglish.
Suarez signed for Ajax in 2007 for 7.5 million euros.
