Liverpool have finalized a £20 million transfer deal with Bayern Munich for Thiago Alcantara.

"I can confirm that FC Bayern and Liverpool have reached a final agreement," Bayern chairman Karl-Heinz Rummenigge said Thursday, confirming the news. "It was Thiago's big wish to try something new towards the end of his career."

Bayern coach Hansi Flick added: "I can only congratulate [Jurgen] Klopp. He not only gets a top player but also a great person. Today, we are all very sad and it was emotional."

Liverpool faced competition from Manchester United to sign Thiago.