http://news.bbc.co.uk/sport1/hi/football/teams/l/liverpool/8102625.stmLiverpool manager Rafael Benitez has defended his decision to pay £17.5m for Portsmouth defender Glen Johnson.
The England right-back agreed on Monday to move to Anfield and he is expected to sign his contract this week.
Benitez said: "
Sometimes you have to spend a little bit more. You can't compete in the top four of the Premier League unless you spend some money.
"We were looking for a quality British player because of the new Champions League rules. He fits both categories."
Chelsea and Manchester City were also interested but it is thought Anfield was his preferred destination.
Johnson had limited first-team chances at Chelsea in his spell there, but established himself in the England team after his move to Portsmouth in 2007.
It is understood Pompey still owe Liverpool £7m from the deal that saw them buy Peter Crouch last summer.
A Liverpool statement said: "We have reached an agreement with Portsmouth and Glen Johnson for the transfer of the player to Anfield."
Johnson will be Liverpool's first signing this summer and as the club are operating under financial restrictions, boss Rafael Benitez is likely to sell Andrea Dossena to help fund the deal.
Portsmouth paid £4m for 24-year-old right-back Johnson, who emerged as Benitez's prime target after having an outstanding season at Fratton Park last season.
Spanish defender Alvaro Arbeloa could also be sacrificed to raise cash towards the Johnson deal, with Real Madrid being linked with an £8m move.
Johnson signed a new four-year deal at Portsmouth in January, but club officials accepted they could not stand in his way if he was offered the opportunity to move to a club playing in the Champions League.
Meanwhile, Reds midfielder Sebastien Leto is on the verge of a move to Greek side Panathinaikos.
The Argentine, who joined Liverpool from Lanus for around £2m in 2007, was on loan at Olympiacos last season, but he has grown impatient waiting for them to make their move.
"I think that the possibilities to play at Panathinaikos next season right now are more than 90%," said the winger.
"I have been waiting for something from Olympiacos all these weeks but they didn't make a move to buy me so far."
Something we have not been doing, spending that little extra for what we actully need.
So possibly Dossena out, but did not play that much, Leto did not play for us at all, and Arbeloa, remember that game against WBA, maybe you need to be 100%, 100% of the time?