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The 26-year-old Uruguay striker has finalised the move for a fee understood to be an initial £46million.
The Anfield club said: “Liverpool FC can confirm Darwin Nunez has completed a permanent transfer to Al-Hilal, subject to international clearance.
“The Uruguayan’s three-year spell with the Reds concludes after he finalised a switch to the Saudi Pro League side today.
“Everybody at the club would like to thank Darwin for his contributions and wish him and his family all the best for the future.”
Nunez moved to Anfield in June 2022 from Benfica for an initial fee of £64m.
He scored 40 goals in 143 appearances for the Reds, but started just eight Premier League matches during their title-winning season last term.
Nunez was a target for another Saudi club, Al Nassr, in January, but a £60m bid was rejected as Liverpool did not want to sell in the middle of the season.
However, his departure looked inevitable after a string of unconvincing displays, and takes Liverpool’s income from sales this summer to almost £200m, with more likely to follow with £40m-plus-rated midfielder Harvey Elliott possibly on the move.
It also opens up a space in their forward line, which has already been strengthened with the arrival of Hugo Ekitike as part of a near-£300m spend, and the number nine shirt.
Liverpool retain an interest in Newcastle’s Alexander Isak after having a £110m bid rejected last week.
Magpies boss Eddie Howe confirmed on Friday that the wantaway Sweden striker is unlikely to feature in the opening game of the Premier League season at Aston Villa.
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