Leicester City have completed the signing of goalkeeper Danny Ward from Liverpool, the Premier League clubs announced on Friday.
Sources told ESPN FC that Liverpool will receive a transfer fee of £12.5 million and retain a 20 percent sell-on fee should Ward leave the Foxes in the future.
Ward, a Wales international, signed a four-year contract and joins fellow goalkeepers Kasper Schmeichel and Eldin Jakupovic on the books at the King Power Stadium.
"I'm delighted to be here and I'm really looking forward to the future with this football club," Ward said in a statement. "I've come here to develop my all-round game and hopefully help deliver some more success. The club has had that in recent years and hopefully there's more to come in the future."
Liverpool were prepared to let Ward depart this summer after completing a world-record move for Roma's Alisson on Thursday.
Ward, who joined from Wrexham in January 2012, has only made three first-team appearances for Liverpool, playing as third choice to Karius and Simon Mignolet last season.
The 25-year-old has, however, enjoyed successful spells out on loan at Aberdeen and Huddersfield Town, where he helped The Terriers achieve promotion to the Premier League.
Sources had said that Ward, capped four times by Wales, had a realistic chance being Liverpool's No. 1 goalkeeper this season after Loris Karius' errors in the Champions League final in May, but Alisson's arrival changed the landscape considerably.
"I'm very happy to welcome Danny to Leicester City Football Club," Leicester manager Claude Puel said. "Preseason preparations have started well for us and with Danny joining the group, it will give us even more competition in the squad, which is crucial for us ahead of what will be another very competitive Premier League campaign."