The Turkey international, who is set to undergo a medical at Melwood this weekend, looked certain to be headed for north London earlier this week after Arsenal offered a £2m fee and a commitment to pay the majority of the 23-year-old’s £2.2m-a-year salary.
That looked to have been enough to entice Sahin to the Emirates Stadium, with the playmaker keen to play under manager Arsene Wenger and in the Champions League.
But Liverpool, who had dropped out of the race to sign the midfielder last weekend, re-entered negotiations with an offer of a £5m loan fee - and their willingness to cover the whole of the player’s salary swung negotiations their way, according to reports in Spain.
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Liverpool manager Brendan Rodgers has already reinforced his midfield over the summer by recruiting Joe Allen from his former club Swansea, but he believes Sahin will add an extra dimension to his side.
He said: “Nuri is going to be very important for us. First and foremost, he’s one who can affect the game going forward.
“He’s a technician who can tactically participate in the game, which is important. He understands how to control games. He’s dynamic, he’s industrious and he possesses great quality.”
The former Borussia Dortmund playmaker could be in line to make his debut at Anfield next Sunday, ironically against Arsenal.