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Liverpool has agreed to pay 45 million euros (£37.5 million) to Porto for Colombian winger Luis Diaz, with a further 15 million euros (£12.5 million) in possible incentives.
The Merseyside club has extended Diaz’s contract until 2027.
The 25-year-old has previously been linked with a transfer to Tottenham, who had a £38 million deal turned down.
“I’m delighted to join Liverpool,” the international wrote on the club’s official Twitter account on Sunday.
Diaz will need a work visa and is not expected to be in Liverpool until the end of next week.
In 18 league games this season, he has 14 goals and five assists for Porto, who are currently in first place in Portugal’s Primeira Liga.
When the asking price was closer to £50 million, Diaz was Liverpool manager Jurgen Klopp’s prime priority for the summer transfer window, but the Reds altered their minds when it became evident the winger may leave if they did not act.
“I’m pleased that we were able to complete this agreement and welcome Luis to Liverpool,” Klopp added.
“I’ve always believed that you should only sign players in January if you intend to sign them in the summer, and Luis is exactly that.
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