Clarke was assistant manager under Jose Mourinho at Chelsea
Liverpool have appointed former Chelsea and West Ham assistant Steve Clarke as their first team coach.
Clarke, 47, represents Liverpool's first major change since new manager Kenny Dalglish took over from former boss Roy Hodgson on Saturday.
"I am really looking forward to working with Kenny and the rest of the staff to help bring good times back to the club," said Clarke.
Dalglish said: "Steve is a great addition to our team."
The Scot added: "I'm delighted we've been able to bring him in. I am looking forward to working with Steve alongside [assistant manager] Sammy Lee and our other staff."
Clarke, who was at Liverpool's Melwood training ground on Monday, played over 500 senior games for St Mirren and Chelsea, and was also assistant manager at Newcastle United.
To be fair to Steve he was phoned last night and he was up here for training this morning - which tells you the lure Liverpool football club has to someone
He left West Ham by mutual consent in June 2010 after Gianfranco Zola was sacked as manager the previous month.
But it was during his time at Chelsea where Clarke achieved most of his success. Between 2004 and 2007, alongside then manager Jose Mourinho, Clarke was part of a coaching team which helped the Blues win two Premier League titles, an FA Cup and two Carling Cups over three seasons.
Clarke added: "I was sat at home doing nothing and now I've got the chance of working with a football great in Kenny Dalglish and also working for one of the world's leading football clubs.
"This was something I couldn't turn down. I am grateful for everybody who has given me such a warm welcome, especially all those at Melwood."
With Dalglish, 59, out of top-level football management since he left Celtic in 2000, Clarke's appointment will be seen as a shrewd move.
After his period of success at Stamford Bridge, Clarke joined West Ham in September 2008 to link up with former Chelsea team-mate Zola at Upton Park but the Hammers struggled last season, finishing one place above the relegation zone.
The Scot will now aim to help Dalglish arrest Liverpool's recent decline with the club 12th in the Premier League and out of the FA Cup following Sunday's 1-0 defeat by Manchester United in the third round.
"It is important we have good backroom staff and Steve comes into that category," added Dalglish.
"To be fair to Steve he was phoned last night and he was up here for training this morning - which tells you the lure Liverpool football club has to someone.
"He was very instrumental in the success of several clubs, none less so than Mourinho's spell at Chelsea so we've got a decent guy there.
"He worked well in tandem with Sammy this morning so it looks positive for us."
Mike Kelly, who Hodgson brought with him from Fulham as coach in the summer, was not involved with the team at Old Trafford and his departure from Liverpool will be confirmed in due course.
Former defender Clarke joined Chelsea as a player in 1987 and helped the west Londoners win the FA Cup, League Cup and European Cup Winners' Cup before retiring in September 1998.
He then went on to become Ruud Gullit's assistant at Newcastle and had a brief spell as caretaker manager at the Tyneside club after the Dutchman's exit in August 1999 before working under Sir Bobby Robson at St James' Park.
Clarke returned to Chelsea as a youth team coach and has assisted Mourinho, as well as former bosses Avram Grant and Luiz Felipe Scolari.
Liverpool have little time to recover from Sunday's FA Cup loss. They travel to Blackpool on Wednesday in the league before hosting Everton in the Merseyside derby on Sunday.
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