The Liverpool striker Fernando Torres says he is "committed to the club and fans" and is "looking forward to working with new Reds manager Roy Hodgson".
Torres had been linked to Chelsea and Manchester City ever since the club failed to qualify for this season's Champions League.
The Spain international returned to training yesterday after helping his nation win the World Cup in South Africa in July.
Torres, who is recovering from the adductor injury he sustained in the final against the Netherlands, is delighted to be back at the club, saying he's really happy to be back with his team-mates.
Liverpool finished seventh last season in the Premier League, failing to win a trophy, with manager Rafael Benitez also leaving the club after six years in charge at Anfield.
As the dismal 2009/10 season drew to a conclusion, Torres claimed the Reds needed to sign four or five players in order to meet his ambitions in terms of challenging for honours.
Liverpool have only added attacking midfielder Joe Cole, Serbian forward Milan Jovanvoic and defender Danny Wilson to the squad, while Yossi Benayoun has joined Chelsea and Argentina defensive midfielder Javier Mascherano is also set to leave.
However, with new manager Hodgson at the helm the former Atletico Madrid star is keen to fire the Reds back into the top four of the Premier League and begin challenging for trophies again.