Liverpool have sealed a £5 million deal rising to £7m for the sale of Rafael Camacho to Sporting Lisbon.
The 19-year-old turned down the opportunity to sign a new contract with the European champions after agreeing to one in January on the provison of being loaned out, which never transpired.
He nows returns to the Portuguese club where he kickstarted his career having rebuffed approaches from Wolves, Schalke and AC Milan due to concerns over game time.
Sporting were unsuccessful with their loan offer during the winter window, but Liverpool now left with only two options: negotiate a permanent transfer with the club or lose Camacho for a £270,000 compensation fee in 12 months' time when his current terms expire.