Liverpool have completed their seventh signing of the summer after landing Javier Manquillo on an unusual two-year loan from Atlético Madrid. The 20-year-old defender underwent a medical on Merseyside earlier this week and has finalised a transfer from the Spanish champions that may allow Liverpool to make the deal permanent, for a fee of around £5m, should he settle in English football. Atlético can break the loan arrangement and recall Manquillo for a fee next summer while Liverpool have an option to buy the player outright in 2016.

Manquillo, a right-sided defender who has played for Spain’s youth teams, is highly-regarded but made only a handful of first team appearances under Diego Simeone last season as Atlético won the La Liga title and reached the final of the Champions League. The defender was linked with Arsenal earlier this summer but has opted to challenge for Glen Johnson’s right-back role at Liverpool as Brendan Rodgers looks to improve his team’s defensive shortcomings ahead of the new campaign.

Liverpool have added Dejan Lovren to their central defensive options on a £20m move from Southampton and last season’s Premier League runners-up also hope to seal Alberto Moreno’s protracted transfer from Sevilla. The left-back has been subject to a stand-off between Liverpool and the Spanish club over his transfer fee all summer but an agreement on the structure of a deal worth £16m is believed to be close.

Manquillo, who joins Rickie Lambert, Adam Lallana, Lazar Markovic, Emre Can, Lovren and Divock Origi as Liverpool’s new recruits this summer, said: “It really was a great group of players [at Atlético]. From a personal point of view it was a disappointing year for me. I was unlucky with injury, but for the group as a whole it was a brilliant year. We managed to achieve things that from the outset appeared almost impossible, so let’s hope that I find something similar here; a team that has the highest aspirations and can win as much as possible.”

The defender added: “When they tell you Liverpool want to sign you, like any player, you are going to be absolutely amazed and you don’t think of anything else other than going straight there.”