The 20 year-old spent the last three years with Nacional in the Uruguayan First Division and became a key player for them. He also played an important role for his country as they triumphed at the 2011 Copa America, being named the tournament's Best Young Player in the process.
At 6'6'', Coates would bring some necessary size and strength to the Liverpool back four. While he may not step straight into the first team, he is a bright talent and would be able to grow behind some of the Reds more experienced defenders.
Coates would undoubtedly bolster Liverpool's defensive options. There are now a lot more possibilities in the back four. Each appears to be an improvement to what we saw last season.
Here are the top five options for the Liverpool defense in 2011-12. Expect to see them all in use at some point this upcoming season.
Completed with the wonderful help of footballformation.co.uk