Andy Carroll has become the most expensive English player in the history of football after joining Liverpool from Newcastle in a £35 million deal.
Carroll, 22, was targeted by Liverpool as a replacement for Fernando Torres, who has joined Chelsea in a deal worth up to £50 million.
Liverpool failed with an offer for the Newcastle striker earlier on Monday but persisted with their interest and convinced the Magpies to sell their No. 9, who had drawn favourable comparisons with his predecessor Alan Shearer after taking the shirt at the start of the season.
A Liverpool statement read: "Andy Carroll has tonight completed his transfer from Newcastle United to Liverpool FC and signed a five-and-a-half-year deal that will keep him at Anfield until 2016.
"The club agreed a record transfer fee with Newcastle earlier in the day for the transfer of the England international striker. The deal was subject to the completion of a medical, which the player has now passed. Andy Carroll will wear the No. 9 shirt for Liverpool."
While Carroll has been in impressive form this season, scoring 11 goals in the Premier League and winning his first international cap, the size of the transfer fee has raised eyebrows, exceeding as it does the £30.3 million Manchester United paid Leeds for Rio Ferdinand in 2002.
Following Torres' exit from Anfield, Carroll will play alongside Luis Suarez, who completed his £22.7 million move from Ajax to Liverpool earlier on Monday night.
Torres' move to Chelsea also means that Carroll's transfer is the eighth most lucrative of all time.
Meanwhile, on a day when they signed Stephen Ireland on loan from Aston Villa and attempted to bing Wigan winger Charles N'Zogbia back to the club, Newcastle also loaned striker Xisco to Deportivo La Coruna.
Xisco said on the Depor website: "I'm returning to my home. Deportivo have given me everything and I've come here focused on helping the team reach their objectives."