Liverpool have announced that Tiago Ilori has joined Reading on a three-and-a-half-year contract for an undisclosed fee.
The 23-year-old joined from Sporting CP in 2013 but made only three senior appearances for the club in all competitions.
"Tiago Ilori has today completed a permanent move from Liverpool FC to Reading," a statement from the Anfield club confirmed.
"Everybody at the club wishes Tiago the best of luck in his future career."
Ilori had spells on loan with Granada, Bordeaux and Aston Villa, though his time at Villa Park was cut short last January.
Reading boss Jaap Stam hopes the Portugal youth international can bring an element of style to his centre-back options.
"Tiago is the type of defender a lot of people like - his technical skill, passing ability, pace, quality and physique," he told the club's website. "We always want players with those attributes within our squad.
"In this league, with all the games we need to play, you never know what's going to happen with injuries and suspensions – so it's also important we have options and the chance to rotate.
"And looking to the future, you need to seize the opportunity when players like Tiago are available, so we're very happy that he will be joining us at Reading."