Liverpool beat Tottenham in the race to sign Diaz
Liverpool have dealt Premier League rivals Tottenham a major blow by snapping up Luis Diaz from Porto.
Spurs, who also missed out on signing Adama Traore this week, were thought to have tabled a bid for the winger.
But Diaz, 25, will arrive on Merseyside after international duty with Colombia, who face Argentina in a World Cup qualifier on Tuesday evening.
Having passed a medical and agreed personal terms, he was was handed a long-term contract ahead of Liverpool paying Porto an initial fee believed to be £37.5million.
And Reds boss Jurgen Klopp cannot wait to see the club's new No23 in action.
He said: "I could not be happier that we’ve been able to get this deal done and bring Luis to Liverpool.
"I have always been a believer in only signing players in January if you would want to sign them in the summer — and that’s very much the case with Luis.
"He is an outstanding player and someone we’ve been tracking for a very long time.
"We believe he has everything needed to fit into our way and adapt to the Premier League, both physically and mentally.
"He is a player hungry for success and knows you have to fight to get what you want. He is a fighter, no doubt. He’s a skilful team player who has always the goal in mind.
"We know Porto are an outstanding club who nurture players in the best possible way and provide a brilliant football education. They are a class club and, I have to say, have been tough negotiators.
"We also have to say thank you to the Colombia FA for being so helpful in allowing us the time to complete this deal.
"They have a big game on Tuesday and I know as well as anyone how important preparation is for matches, so for them to allow us a few hours to finalise the transfer without impacting their training was greatly appreciated.
"Luis is a player we believe will make us better now and in the future. He is the player we really wanted and they’ve made it happen, so I am very happy."
In a short video released on Twitter, Diaz added: "I'm very happy to sign for Liverpool."
He joins Liverpool after two-and-a-half seasons with Porto, where he made 125 appearances and scored 41 goals.