The Reds confirmed a deal has been done on their website.

Liverpool have refused to disclose the amount, but it is believed to be in the region of £18million with another £4million in add-ons.

Mascherano has been given formal permission to speak to the Catalans and personal terms are expected to be a formality.

Barcelona have already indicated they are prepared to pay the Argentina skipper £85,000-a-week.

Barca have beaten Inter Milan to sign Mascherano and the Reds were not interested in dealing with the Italians when they would only offer £6million plus Sulley Muntari.

Although he will be sad to lose a player of Mascherano's class, Roy Hodgson will be glad the summer-long saga is over.

He will use the money to strengthen his squad and has agreed a £3million fee with Fulham for Paul Konchesky.

Fulham will not complete the deal until they have brought in Carlos Salcido from PSV Eindhoven to replace Konchesky.