Sunderland have signed Liverpool forward Fabio Borini for a fee that could rise to £10m.
Italy international Borini had a loan spell with the Black Cats during the 2013-14 season, scoring seven goals in 32 matches, but then rejected a permanent move to the Stadium of Light.
The 24-year-old was also a target for Inter Milan, Fiorentina and Watford, but their bids were turned down.
Liverpool may also sell defender Jose Enrique, who is a target for West Brom.
Watford, newly promoted to the Premier League, had offered £7m for Borini, while Inter’s bid was worth £6m.
Fellow Serie A side Fiorentina were also keen on the striker but Borini decided to join Sunderland.
The Black Cats will pay £8m up front, but the deal could eventually be worth £10m to Liverpool with add-ons.
Borini became Brendan Rodgers’s first signing as manager when Liverpool paid Roma £11m in July 2012 after working with him at previous clubs Chelsea and Swansea.
He has scored three goals in 38 appearances for the Reds.
Meanwhile, 29-year-old Spanish left-back Enrique is surplus to requirements after four years at Anfield.
West Brom boss Tony Pulis is keen to strengthen his squad and the Baggies have made their interest known.
Liverpool counterpart Rodgers is willing to let Enrique go as it is unlikely he will figure prominently, if at all, this season.
Enrique, signed by Rodgers’s predecessor Kenny Dalglish from Newcastle United in a £6m deal in August 2011, has also interested David Moyes’s Real Sociedad.