AC Milan have confirmed that Liverpool midfielder Alberto Aquilani has joined the club on loan until next summer with the option to make the deal permanent.
The Rossoneri can sign Aquilani until 2014 if the Italy international makes at least 25 appearances for the club this season.
A statement from AC Milan read: "AC Milan announces it has acquired Alberto Aquilani on loan with an option to buy the player's rights from Liverpool. Aquilani has signed a contract until June 30, 2014."
Milan had been looking to reinforce their midfield line following the departure of veteran Andrea Pirlo to Juventus earlier this summer.
The 27-year-old spent last season on loan at Juventus before returning to Anfield earlier this summer. He impressed during the club's pre-season campaign but was left out of Kenny Dalglish's first three match squads.
Dalglish explained the decision to allow Aquilani to leave, though, citing the Italian's desire to be with his young family, who have always remained based in his homeland.
"It's a great move for Alberto," Dalglish told the club's official webite.
"He's got his wife and kid over there. It was difficult for him here. When he came back his pre-season training was excellent.
"We gave him a few games, he did well in those games. But the problem for us was trying to get him in the team. We couldn't get him in the team.
"Obviously everybody wants to play and Alberto is moving over to a fantastic football club.
"He goes there with the best wishes of everyone and we hope it works out for him, because he was never a problem in any way, shape or form."
Aquilani has made 28 competitive appearances for Liverpool, scoring two goals.