The versatile 26-year-old defender has departed Anfield for the Championship outfit for a year
Liverpool's Ben Davies has joined Sheffield United on a season-long loan, the Reds have confirmed.
Davies arrived at Anfield in January as emergency defensive cover during an injury crisis, but with the likes of Virgil van Dijk, Joe Gomez and Joel Matip now firmly back in the fold, the versatile former Preston man found himself pushed down the pecking order.
There had been sustained interest from Sheffield United in the defender's services and they have now completed the capture of the 26-year-old on a temporary basis.
Liverpool, who rejected a previous offer from the Championship side due to their unwillingness to have a purchase option in the move, will receive an initial loan fee of £500,000 ($700,000).
And if the Blades win promotion back to the Premier League, Davies will earn his parent club a further bonus of £500,000 ($700,000). Sheffield United will also cover all of the player's wages.
It has been a transfer that has been pushed through by new United boss Slavisa Jokanovic, a big fan of Davies, who has previous experience of loan deals with York, Tranmere, Southport, Newport and Fleetwood.
Liverpool believe Jokanovic's preference for a three-man defence, as well as the fact Sheffield United are expected to challenge for promotion from the Championship, make this an ideal loan for Davies, who has not played competitively since turning out for Preston against Sheffield Wednesday on January 30.
Celtic and Bournemouth had shown interest, while Burnley were also keen, but it is Sheffield United who have won the race.
Davies did, at least, get the chance to play at Anfield before departing, appearing as a late substitute in the pre-season friendly win over Osasuna last week, but he leaves without having played a single minute of competitive football.
He becomes the second Reds centre-back to move to the Championship this summer, with 20-year-old Sepp van den Berg having joined Preston on loan in June.