Liverpool will only pay £5m upfront for Bayern Munich midfielder Thiago Alcantara, according to journalist David Maddock.

The Reds have offered £20m for the Spanish international (with another £5m in add-ons), and the initial fee is expected to be paid in four instalments over four years:

So basically LFC will pay only around £5m this year, the rest in yearly instalments.

— David Maddock (@MaddockMirror) September 17, 2020

The Premier League champions have limited transfer resources so the agreement is testament to the resourcefulness and ingenuity of sporting director Michael Edwards, who is believed to have masterminded the deal.

It is thought that manager Jurgen Klopp was the one pushing for the transfer to happen, despite Thiago not fitting the profile of a signing Liverpool would usually make, but the agreement has been finalised.

Speaking to the German media today, Bayern’s chief executive Karl-Heinz Rummenigge confirmed that the 29-year-old will be moving to Merseyside in the coming days:

“I can confirm that FC Bayern have reached a final agreement with Liverpool FC. It was Thiago’s great desire to do something new at the end of his career.”

It’s unlikely that Thiago will be available for the clash against Chelsea on Sunday, with the midfielder yet to undergo a medical and needing international clearance before playing for his new club.