Liverpool sign Brazilian midfielder Coutinho

Philippe Coutinho (GETTY IMAGES)

Liverpool have followed up the signing of striker Daniel Sturridge by agreeing an £8.5 million deal for Internazionale's Brazilian midfielder Philippe Coutinho.

The 20-year-old is expected to undergo a medical next week, though Liverpool will need a work permit before the deal can be completed.

Inter paid £3.5m for Coutinho in 2008 when he was just 16. Big things were expected of him but last season he went on loan to Espanyol and his one Brazil cap came in 2010.

He was linked with a move to Southampton having worked with new manager Mauricio Pochettino at Espanyol. But he chose Anfield, where manager Brendan Rodgers is still hoping to add to his squad before the January transfer window closes. "We still need one or two additions," he said on Friday.