Southampton manager Mark Hughes believes Danny Ings is an ideal fit for them after the Liverpool striker joined on an initial loan deal.
An agreement has been struck between the clubs for the move to become permanent at the end of the season.
Press Association Sport understands the Saints will pay £18million up front with a further £2million due based on the number of appearances he makes while the Reds will also receive 20 per cent of any sell-on fee.
For Ings, who has agreed a four-year contract, it is a return to his hometown club who originally released him aged 10 because he was too small.
It is understood Southampton was always his first choice when it became apparent he would have to leave Anfield after three years – two seasons of which were decimated by serious knee injuries – to get regular first-team football.
“There was significant competition for Danny, with a lot of clubs keen to complete a deal for him, so we’re clearly delighted that he chose to join us,” said Hughes.
“We have admired him for some time now, not only for his ability, but also his character and personality, which we feel will be an ideal fit in our dressing room.
“He’s obviously a local boy, who gives us another excellent option up front.
“He didn’t get to play as much as he would have liked at Liverpool, but he has been injury-free for some time now and has a real point to prove.
“It’s a great boost for us on the eve of the season to bring another quality player into the squad, and we’re excited about what he can bring to the group.”
Liverpool manager Jurgen Klopp paid tribute to the forward, who endured a difficult time at Anfield but was one of the most popular members of the squad.
“It is a very strange feeling saying goodbye to Danny. The biggest emotion is how much we will miss him.
“He is such an outstanding boy. Honestly, if you could bottle character and spirit, his would sell worldwide - he is so incredibly positive and full of energy. But we won’t just miss his character because he is a footballer who has all the tools.
“It’s why the other emotion is that of being pleased for Danny that he has such a good move and his future is now very bright.
“When he said to us he thinks this is the window it might be best to look elsewhere, for the sake of his career and playing more regular football, it was clear early on that Southampton has great appeal to him personally. It’s his home, his family is there, it’s his boyhood club. They have a great manager and I think the supporters and him will feed off each other’s passion and energy.
“So we say farewell to a friend, but for Danny I know the best chapters in his personal story are still to be written. He is as fit now as at any point of his career I would bet and he just requires the opportunity.
“He has that opportunity and on behalf of his Liverpool family we say good luck Danny and we will miss you.”
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