Degen was available on a Bosman deal after opting against signing a new contract at Borussia Dortmund.

Liverpool confirmed in May that Degen was on his way to Anfield and the right-back on Thursday signed his four-year contract.

He was part of Switzerland's Euro 2008 squad and will vie with Alvaro Arbeloa and Steve Finnan for a starting spot next season.

At the time of the signing, Reds boss Rafa Benitez admitted it was important to pick up free transfers in order to use his money on other areas of the squad.

"Sometimes you can find these players on the market," said Benitez on the club's official website.

"When you find a player like him who costs no money it means you can use money for improving other parts of the squad.

"He is a good signing, a player of potential, who can help us improve in the wide areas."