Danny Ings has joined Southampton in a deal that will see him loaned to the St Mary's club for 2018-19 and then move to them permanently on July 1, 2019.
It is understood that a fee of £20m has been agreed upon by the two clubs, £18m of which is guaranteed and the rest £2m will be based on the number of appearances Ings makes for the Saints.
Ings originally arrived at Liverpool from Burnley in June 2015 and made 25 appearances for the club, scoring four goals. Those figures would have been far greater but for the fact the 26-year-old was required to twice battle back from serious knee injuries during his time with the Reds.
"When this football club came up, I had to take the opportunity to come home. It's a fantastic football club who play great football and I'm just happy here," Ings told Southampton’s TV channel.
"You can tell that as a club it's very, very organised. From the start, everyone I've met has been fantastic with me and shown me every single detail I need to know. The facilities are great and I can't wait to get started."
Southampton boss Mark Hughes is delighted to have secured the signing of Ings on Deadline Day.
"There was significant competition for Danny, with a lot of clubs keen to complete a deal for him, so we're clearly delighted that he chose to join us," he said.
"We have admired him for some time now, not only for his ability, but also his character and personality, which we feel will be an ideal fit in our dressing room.
"He's obviously a local boy, who gives us another excellent option up front.
"He didn't get to play as much as he would have liked at Liverpool, but he has been injury-free for some time now and has a real point to prove."