Liverpool have agreed a deal to send forward Daniel Pacheco to Atletico Madrid on a season-long loan.
Pacheco made just seven appearances for Liverpool's senior side last season and has played only 14 matches overall.
He is still regarded as a bright prospect for the future but it has been decided that he should gain further experience out on loan.
Having spent the final three months of last term with Championship runners-up Norwich, a number of clubs were reportedly interested in securing his services on a short-term deal this summer.
A move to Coventry fell through and it appeared Pacheco would instead be on his way to Spanish outfit Rayo Vallecano.
However, it is Atletico who have now won the chase for his signature and the 20-year-old will hope to force his way into their first team on a regular basis.
"Liverpool have today finalised a deal to send Daniel Pacheco on a season-long loan to Atletico Madrid," said a club statement.
"The 20-year-old will stay in La Liga until June 30, 2012."