Aston Villa have signed former Liverpool playmaker Philippe Coutinho on a permanent deal from Barcelona for £17million.

The 29-year-old moved to Villa Park on loan in January in a deal which included an option to buy at the end of the season.

Coutinho has now signed a contract that will keep him at Aston Villa till 2026, and has taken a considerable wage cut to remain at the club.

Aston Villa manager, Steven Gerrard said: “This is a brilliant signing for Aston Villa.

“Phil is a model professional and his impact on the group has been very clear since he joined in January.

“With the way he conducts himself on and off the pitch, he’s also a valuable role model for our younger players who can only benefit from his experience.

“As we look to build towards next season, it is incredible to work at a club that executes its business so decisively and smoothly.”

Since he joined in January, Coutinho has scored 4 goals with 3 assists for Aston Villa.