UPDATE: Saturday, August 25 at 4:55 p.m. ET by Ben Chodos
Sahin completed a medical test in Liverpool today and signed his name to complete the deal, according to Goal.com.
The formalities are out of the way and the 23-year-old is officially a member of Liverpool for the remainder of the Reds' 2012-13 campaign.
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The deal represents a major coup on the part of Liverpool manager Brendan Rodgers, who was thought to be weak at attracting top players when he took over the reins at Anfield.
The Reds had to beat competition from Arsenal, who were also in the running to acquire the services of the Turkish International. Sahin comes to Liverpool on a year-long loan from Real Madrid, where he did not feature much owning to injuries and fierce competition for midfield places from some of the world's best players.
Before signing for the Galacticos, Sahin played for German outfit Borussia Dortmund. The Turk was very impressive in the Bundesliga for Dortmund and also played a crucial role in their journey to becoming Champions.
Mourinho is happy to loan out Sahin as he wants him to get some regular first-team action under his belt.
Sahin is now set to undergo a medical at Anfield and if he comes through that he will become Rodgers' fourth signing of the summer.
Liverpool are set to face Manchester City at Anfield on Sunday in their first home fixture of the League season.
Sahin's signing does a lot to inspire positivism among those related to Liverpool ahead of that clash following the previous week's debacle at the Hawthorns against West Brom. Liverpool lost that match 3-0 and Daniel Agger was sent off. The Dane will thus not play against City.
About the signing: Sahin is an accomplished midfielder who can provide assists and score goals as well. He is not shy to get stuck in a tackle, but the game in England maybe a bit different for him to revel in and dominate with that side of his play.
Above all, Sahin is a technically gifted player, one that Rodgers will like to have to execute his plans in the system he employs. Sahin being a southpaw also lends a tad more balance to the side.
With Sahin arriving, I expect the midfield to consist of Joe Allen, Lucas Leiva and Nuri Sahin for most of the season, with Steven Gerrard moving to a more advanced role following the ineffectiveness of Stewart Downing when judged against the level needed for a side having top-four ambitions.