Liverpool have appointed Brendan Rodgers as manager, the Premier League club announced on Friday.
The former Swansea City boss replaces Kenny Dalglish who was sacked after Liverpool finished eighth in the Premier League last season.
Swansea announced on Wednesday that 39-year-old Rodgers had been offered the job as Kenny Dalglish's successor with the only stumbling block being the compensation package the club would receive for their highly regarded manager.
Rodgers turned down an offer to talk to Liverpool earlier this month and the Merseyside club's American owners then held discussions with Wigan Athletic manager Roberto Martinez.
Northern Irishman Rodgers guided Swansea to a respectable 11th place finish in the Premier League last season, their first campaign at the highest level since 1983.
Rodgers led the club to promotion from the Championship (second division) via the playoffs after moving to Swansea in 2010 following spells in charge of Watford and Reading.
Liverpool have been searching for a replacement for Dalglish, whose second spell in charge at Anfield ended when he was dismissed after the club ended the season in eighth place, their worst finish for almost 20 years.
Dalglish did steer Liverpool to a League Cup triumph and an FA Cup final appearance last season but the club are desperate to get back into the top four and mount a title challenge.
Once the dominant force in English football, Liverpool have not won the championship since 1990.
They finished the 2011-12 campaign 37 points behind champions Manchester City and recorded their fewest wins (14) in a top flight season since 1953/54.