Houllier is a big fan of Finnan (right)
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Liverpool have confirmed they have agreed terms on a deal for Fulham full-back Steve Finnan.
As exclusively revealed on the BBC Sport website in May, Anfield boss Gerard Houllier made the defender his first priority of the summer.
The Republic of Ireland international should officially be a Liverpool player by July, for a fee of around £3.5m.
Chief executive Rick Parry told Liverpoolfc.tv: "We have agreed terms with both the club and the player and plan to complete the transfer at the end of this month.
"Steve is a very talented player who we were eager to bring to Anfield. We are pleased that he has agreed to join us and look forward to seeing him in action next season."
Finnan, 27, started his career with non-league Welling and had spells with Birmingham and Notts County before joining Fulham for £600,000 in 1998.
He played over 200 games for the Cottagers and will link up with former Fulham assistant boss Christian Damiano, who Houllier has recruited for next season.
Houllier is now expected to turn his attention to beating Manchester United to the signature of Finnan's Ireland team-mate Damien Duff.
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Blackburn are virtually resigned to losing their £12m-rated winger, which has re-ignited Liverpool's interest in a player they have tracked for 12 months.
Houllier has been given the go-ahead to strengthen his squad by Parry, who hinted at further high-profile Anfield arrivals.
"I'm reasonably hopeful that the sort of players we will be bringing in will please the fans and have them on the edge of their seats," he added.
"We want them to be players who will make a significant improvement."