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.

The 29-year-old, 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.

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.

When asked about a potential move for the Spaniard last week, Liverpool manager Jurgen Klopp said: “I cannot end speculation as long as the transfer window is open.

“It is nice that we are linked with him but that is pretty much it really. It is because he is a good player and Liverpool is a big club, so that is nice.”

Thiago started his career at Barcelona and was heavily linked with a move to Manchester United when David Moyes replaced Sir Alex Ferguson in 2013, but the move did not transpire and he went to Germany instead.

As well as the Champions League, he has won seven consecutive Bundesliga titles, four German Cups and the Club World Cup with Bayern.

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