Finnan Quits Liverpool for Espanyol

Liverpool full-back Steve Finnan has signed for Espanyol on a two-year deal for an undisclosed fee. The 32-year-old defender, who signed from Fulham for £3.5m in 2003, was an ever-present for Rafael Benitez's first two seasons in charge at Anfield but has since lost his place to Alvaro Arbeloa and summer signing Philipp Degen.

Finnan will provide defensive cover for the Spanish side after they sold Pablo Zabaleta to Manchester City. The deal is thought to be separate to Liverpool's pursuit of Espanyol midfielder Albert Riera, although the Spaniard could still complete his switch to Merseyside before the transfer window closes tonight.

Liverpool have bolstered their reserve squad with two new signings. Brazilian teenager Vitor Flora has joined on a free transfer. The 18-year-old striker holds an Italian passport and last season played for Botafogo FC. Hungarian goalkeeper Peter Gulacsi has joined the club on a permanent deal after spending the last 12 months on loan at Melwood. Gulacsi has signed a contract until 2010.