Liverpool have made their third signing of the summer with Bolton goalkeeper Adam Bogdan, another free agent, agreeing terms.
The 27-year-old Hungary international's contract with Wanderers, for whom he made more than 100 Premier League appearances, expires at the end of the month and he will officially join the Reds on July 1.
Bogdan's arrival follows that of Manchester City midfielder James Milner and Burnley striker Danny Ings, also both out of contract.
Bolton Wanderers have confirmed Eidur Gudjohnsen will wear number 22 when he returns for the club.
The popular Iceland striker was a hit in his first spell at Wanderers, and the club have welcomed him back on social media.
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Bolton have confirmed the signing of veteran striker Eidur Gudjohnsen for the rest of the season.
The 36-year-old, who previously played for Wanderers between 1998-2000, has been training at the Macron Stadium for the last month and boss Neil Lennon said on Thursday that an agreement was imminent.
And the club confirmed on their Twitter account on Friday morning that a deal had been struck, saying: "BWFC have completed the signing of free agent Eidur Gudjohnsen on a deal until the end of the season."
Bolton are now waiting for international clearance to see if the Icelandic forward, who went on to play for Chelsea and Barcelona after his stint with Bolton, will be available for Saturday's Sky Bet Championship trip to Reading.
Neil Lennon has outlined his Bolton battle plan as he prepares to take charge of Wanderers for the first time.
The former Celtic boss replaced Dougie Freedman last Sunday after Bolton won just one of their opening 11 Sky Bet Championship games.
They are rock bottom as they head to fellow strugglers Birmingham on Saturday and Lennon insisted he expects instant progress from his new side at St Andrew's.
I can't guarantee that we'll go to Birmingham and wipe the floor with them," Lennon said, with Bolton six points behind their fifth-bottom hosts.
It would be good to try to get the result; if we can give a decent performance then so be it. What I'm looking for is a performance of some sort that gives me encouragement going forward.
Neil Lennon has taken over the reins at Bolton Wanderers as the club languishes at the bottom of the Championship.
He's won three Scottish Premierships and Two Scottish Cups with Celtic.
So he's brought a lot of optimism to the Macron Stadium.
David Chisnall has been to meet him:
New Bolton boss Neil Lennon says the challenge at the Macron Stadium is just what he needs after his successful spell in charge of Celtic.Read the full story ›
In a statement, Bolton thanked Freedman "for all his hard work and effort during his time with the club".
But the chairman said results had not "reflected" his efforts.
“Dougie has worked tirelessly off the field to improve the infrastructure of the football club. Unfortunately, recent results on the pitch have not reflected all his work off it.
“The club has faced a difficult time following our relegation from the Premier League and Dougie has helped to restructure the club in order for it to become successful again under ever-tightening constraints.
“I would like to thank Dougie personally for all his commitment and efforts for Bolton Wanderers.”
CLUB STATEMENT: #BWFC can confirm that manager Dougie Freedman has today left the club by mutual consent.
Bolton have parted company with manager Dougie Freedman after a wretched run of results left them floundering in the Sky Bet Championship relegation zone.
Wanderers have won just one of their opening 10 games in the league and Wednesday's 4-0 drubbing at Fulham proved to be the final nail in Freedman's coffin, with the club announcing the Scot's departure by mutual consent on the eve of Saturday's home game with Bournemouth.
Freedman left Crystal Palace to take up the vacancy at Bolton two years ago this month but after narrowly missing out on the play-offs in that campaign, his side have toiled in the lower reaches of the second tier ever since.
Bolton Wanderers boss Dougie Freedman admits the club are in a 'difficult place right now' after just one win in eight Championship games.
Tonight they leave their league woes behind as they travel to Stamford Bridge to play Chelsea in the third round of the Capital One Cup.