It was reported on Thursday evening that Edwards was on the verge of being promoted to a new role within the club, and that “he will now oversee all incomings and outgoings at Anfield, from the first team to the academy.”
The appointment was confirmed on Friday morning.
“This decision is hugely positive for us and it will make us better and stronger in managing the process of building and retaining playing talent all age groups,” Klopp said.
“Development is so important and it makes sense to have a position, within the football structure specifically, that focuses on where we can improve.
“It’s no secret I like the concept of a sporting director and having worked under this model previously I have found it to be nothing but positive and forward thinking.
“Michael is absolutely the right person for this. He has the knowledge, expertise and personality to flourish in the role and I was delighted when he told me he would be accepting the position.
“Importantly, he also has a fantastic team of people around him, who have all played a significant role in putting together the talent we currently have in the first team, development squad and at even younger age levels.”
Edwards started his career at Liverpool as head of analytics back in November 2011, before being promoted to technical director last year.
He has admitted his pride at his new role, saying:
“I’ve been proud to be part of the football operations structure here at Liverpool and it’s a great honour to be asked to lead it going forward, in this new role of sporting director.
“We have a brilliant team of people who all make a huge contribution to the process of player transfers and retention, together with recruitment for the senior team, development squad and our Academy. Jurgen’s belief and confidence in what we have done is also welcomed and was a big factor in me making the decision to accept this position.
“It’s critical that we are always focused on development and improvement across all areas of the football operation.
It’s an exciting challenge to be tasked with the responsibility of reviewing our practices and then implementing positive changes as and when they are needed. I know I’ll be supported by a brilliant group of people while doing this.”