The 29-year-old, considered one of the best midfielders in the world, put pen to paper on a "long-term contract" on Friday, with media reports of a transfer from Bayern Munich worth STG25 million ($A44 million).

Klopp said Liverpool had signed a wonderful person and a brilliant player, someone who can be part of the next stage in Liverpool's history.

"He can demand rhythm, that's how it is," Klopp said.

"He can obviously create and use space for other players, all these kinds of things. First touch incredible; vision incredible; passing pretty good!

"But he (is) quick as well, work-rate great. His numbers were absolutely special last year in Germany as well, most steals, ball recoveries and all these kinds of things; most passes."

Klopp said improving the squad was crucial as he looks to extend Liverpool's place at the top of English and European football with the Reds poised to also add Diogo Jota from Wolves.

"To write the next chapter we have actually to create a new story, and for a new story you need new actors as well," Klopp said referring to Thiago's arrival.

"We knew that always, but we don't go for some actor just to have different guys, we want to have the right guys in and then everything is fine.

"It's not that somebody is coming in and now we have to roll red carpets or whatever, not at all - he wants to be part of the team, work hard and be as successful as possible."

Thiago, who began his career at Barcelona, described joining Liverpool as "an amazing feeling".

"I was waiting for this moment for a long time and I am very, very happy to be here," he said.

Thiago lelft Bayern after seven years during which he won the Bundesliga in every season and the league, German Cup and Champions League treble in the past campaign.

It's understood Liverpool have finalised a Stg40m ($A71m) deal for 23-year-old Portugal forward Jota who has spent the past three seasons at Molineux.

Jota, who was left out of Wolves' first two matches of the season, is set to sign a five-year contract on Saturday.

Australian Associated Press