Hungary U21 goalkeeper Peter Gulacsi signed for Liverpool in August 2008 after a successful year on loan.>
The stopper, who is contracted until 2013, follows countrymen Krisztian Nemeth and Andras Simon in joining from MTK Hungaria.
He was part of the treble-winning reserve team of 2007.
I am very proud to have signed for Liverpool," said Gulacsi. "It's a dream for me to be working at such a great club
alongside one of the best goalkeepers in the world, Pepe Reina.
"After spending one year on loan I had no hesitation in agreeing to sign a permanent contract. To have signed for Liverpool is an unbelievable feeling."
Gulacsi made 18 appearances for loan side Hereford United in the latter stages of 2008-09 but couldn't stop them dropping out of the Football League.
The youngster returned to Liverpool in time for pre-season tours of Switzerland and Asia, where he made a string of cameo appearances.