The 20 year old is a versatile, two footed, player capable of playing in any of the attacking positions.
The attacking midfielder spent the second half of last season on loan to Spanish side Espanyol. It was a highly successful spell and he scored six goals in 16 appearances.
Coutinho made his international debut for Brazil in October 2010, shortly after his move to Inter. But hasn’t featured since.
Liverpool attempted to sign Coutinho on loan last summer and had previously enquired about him in 2011.
Coutinho’s arrival is likely to allow Spanish midfielder Suso to leave on loan to gain more playing time.