Liverpool have confirmed this evening that they have reached an agreement with both Portsmouth and Glen Johnson over the player's transfer to the Merseyside club.
Johnson, 24, will move to the Premier League runners-up for a reported £17.5 million.
The England full-back joined Portsmouth in 2007 following a frustrating spell at Chelsea where he struggled to maintain a first-team place.
It is understood that Chelsea were interested in bringing Johnson back to Stamford Bridge, but the player opted instead to join Rafa Benitez at Liverpool.
Whilst Johnson is undoubtedly a talented attacking full-back, a number of Liverpool supporters may raise an eyebrow at the decision to spend so much money on a position that does not appear to be a main cause for concern.
Alvaro Arbeloa has had a steady season in the Liverpool defence, and many Kopites consider finding backup for striker Fernando Torres and a winger as summer priorities.
It is likely that Benitez will need to sell either Andrea Dossena or Arbeloa to finance the deal due to the financial restrictions Liverpool are currently under.
Yesterday it was reported that co-owner George Gillet will sell his stake in NHL franchise the Montreal Canadiens, worth an estimated £332.9 million. Gillet and fellow owner Tom Hicks have until July 24 to repay £350 million they borrowed to buy the club in February 2007.