Both the Reds and the Blues agreed a £17.5million fee with Portsmouth earlier this month.

Pompey were resigned to losing Johnson, with the player keen to join a bigger club to enhance his bid of keeping his place in the England squad for next summer's World Cup finals.

Johnson was given permission to speak to both clubs about a move last week and the full-back has decided to make the switch to Anfield rather than return to Stamford Bridge for a second spell.

A Liverpool statement read: "Liverpool FC confirmed this evening that they had reached an agreement with Portsmouth Football Club and with Glen Johnson for the transfer of the player to Anfield."

Johnson will be Liverpool's first major signing of the summer, but his arrival is sure to cast doubts over Alvaro Arbeloa's long-term future on Merseyside.