Liverpool sign midfielder Thiago Alcantara from European Champions Bayern Munich

The Spanish international has signed for the Premier League champions on a four-year deal. Credit: Frank Hoermann/SVEN SIMON/DPA/PA Images

Liverpool have completed the signing of Bayern Munich midfielder Thiago Alcantara on a four-year contract.

The Spain international, who was in the last year of his deal with the Bundesliga club,  arrives for an initial fee of £20million.

Manager Jurgen Klopp insists the 29-year-old's arrival will not "negatively impact" any player in his squad despite Georginio Wijnaldum being heavily linked to Barcelona.

Earlier in the day, Thiago had bid an emotional farewell to Bayern, saying he wanted a "new challenge".

"I have made the most difficult decision of my sports career," he said in a video posted on Twitter.

"I will close this chapter on this wonderful club where I have grown as a player for seven years. Triumphs, joy and also hard times.

"But what I am most proud of is that I arrived in Munich as a young man filled with dreams and now I will leave completely fulfilled with a club, a history and a culture.

"My decision is purely of a sporting nature. As a soccer player, I want new challenges to develop myself further."