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Carlos Bacca's agent Sergio Barila said his player selected 'the best club for his future' after revealing the 28-year-old has agreed a move to AC Milan.
The Reds had Sevilla's £20m Colombian on their radar and Berila, who confirmed Anfield interest, said last week that Liverpool 'fit the bill' as Bacca considered his next step.
Ian Ayre had remained at the Copa America after tying up a deal for Roberto Fermino and was in position to move for further attacking options, with Salomón Rondón also in their sights, but Liverpool have lost out to Milan in the race for Bacca.
"I can confirm that Milan and the player have reached an agreement," Bacca's representative told Milan News.
"Carlos has chosen the best for his future, it is normal to be happy.
"The agreement is for how many years? You are better asking the Rossoneri."
Premier League kits 2015/16: In pictures
Bacca scored 20 goals in 31 La Liga starts for Europa League champions Sevilla last season.
