Liverpool have beaten off rival interest from Manchester United to seal a deal worth an initial £20 million for Bayern Munich midfielder Thiago Alcantara, sources have told ESPN.

Thiago, 29, whose contract with the Champions League winners was due to expire next summer, has agreed a four-year deal at Anfield, where he will wear the No. 6 shirt.

Sources have told ESPN that the fee for Thiago could rise to £25m, based on Liverpool winning the Premier League or Champions League during his time at Anfield. The Spain international will complete a move to Merseyside once he has successfully passed a medical.