Reading have completed the signing of defender Tiago Ilori from Liverpool on a contract until 2020 for an undisclosed fee.
Ilori, 23, struggled to make an impact at Liverpool following his arrival from Sporting Lisbon for an initial £3.5 million in 2013, making just three first-team appearances for the Reds.
A source told ESPN FC that a £3.75m fee was agreed between Liverpool and Reading, and the Championship club have now confirmed that the deal has gone through.
- Reading FC (@ReadingFC) January 18, 2017
"Tiago is the type of defender a lot of people like -- his technical skill, passing ability, pace, quality and physique. We always want players with those attributes within our squad," Reading boss Jaap Stam told the club's official website.
"In this league, with all the games we need to play, you never know what's going to happen with injuries and suspensions - so it's also important we have options and the chance to rotate.
"And looking to the future, you need to seize the opportunity when players like Tiago are available, so we're very happy that he will be joining us at Reading."
The source told ESPN FC that the deal includes a "significant" sell-on clause for Liverpool.
Ilori only featured for Liverpool's under-23s side this season after failing to force his way into Jurgen Klopp's first-team plans.
He returned from a loan spell at Aston Villa last season to play for Liverpool in the FA Cup in the midst of an injury crisis, and has also had temporary spells at Granada and Bordeaux during his time at Anfield.
Ilori will hope to help Reading in their push for promotion to the Premier League, with the club currently sitting fourth in the Championship with a game in hand which could move them third.