The Swiss international, who Liverpool signed from Blackburn Rovers in 1999 for £3.5m, had fallen out of favour under new Liverpool boss Rafael Benitez, figuring in just three games all season.

Henchoz had seen interest from Celtic's biggest rivals Glasgow Rangers and also held talks with Bolton Wanderers but was swayed by Celtic manager Martin O'Neill.

He said: "I'm very happy with the deal. I'm leaving one great club for another great club. There were a few others interested but as soon as I heard of Celtic's interest and met Martin O'Neill that was it."

"After Liverpool playing here in European competition, I know all about the atmosphere that is created by the Celtic support here in the stadium and I can't wait to experience that in a Celtic shirt."

"I am also looking forward to meeting up with the players here after those Uefa Cup games and seeing so much of Celtic on TV in the Champions League."

"There are 15 games left in the league. I hope to play a part in not only retaining the title for Celtic, but also adding the Scottish Cup to lift the double."

Henchoz suprisingly never found the net for Liverpool, although he did score in a pre-season tournament in the United States, ironically against Celtic.