ROY Hodgson has been appointed the new manager of Liverpool after the club agreed compensation with Barclays Premier League rivals Fulham.

The 62-year-old takes over at Anfield on a three-year contract, 28 days after the departure of Rafael Benitez.

Benitez left Liverpool after a disappointing season which saw the legendary club finish just seventh in the league.

Hodgson, a former Inter Milan and Blackburn boss, was Liverpool’s first choice despite a host of other names being mentioned.

It is believed Liverpool have had to pay �2million to release the Englishman from his contract at Craven Cottage.