Joao Teixeira has signed a four-year deal with Porto after completing a free transfer from Liverpool, the Portuguese club announced on Monday night.
Teixeira was out of contract at Liverpool but was listed on the Premier League club's retained list, meaning the midfielder was offered new terms.
However, the 23-year-old has instead opted to return to his homeland.
"I'm extremely happy. It was a dream of mine to play for this great club," he told Porto's website. "I had the ambition of wearing this jersey, as I got used to watching FC Porto win titles every year.
"I hope everything turns out great and I want to do my best."
João Teixeira: "Ambicionava vestir esta camisola"
➡ https://t.co/DalfGTPxj9#FCPorto pic.twitter.com/XoMv4eBhnN- FC Porto (@FCPorto) June 13, 2016
Teixeira joined Liverpool from Sporting Lisbon in 2012, but struggled to break into the first team at Anfield.
He spent loan spells at Brentford and Brighton but made seven appearances for the first team under Jurgen Klopp last season, scoring in an FA Cup replay win over Exeter.
Chairman Jorge Nuno Pinto da Costa said Teixeira chose Porto over Italian side Fiorentina.
"We have high hopes for Joao Teixeira, for his talent, his youth, and his eagerness to sign for FC Porto, as -- were he not a fan of the club -- he would have signed for a big Italian club as Fiorentina, one of the clubs keeping an eye on him," the chairman said.
"He was a free player, so he was the one making the decision of signing for us, which pleases us and gives us a guarantee that he will join this team body and soul; he will surely be an asset."