Diaz has made the switch from Portugal to England, becoming the second signing of the Reds’ season in a deal worth an initial £37.5 million.
The 25-year-old has signed a five-year contract with the club that ties him down to 2027, with it claimed that he will be earning in the region of £90,000 a week.
While Diaz wore the No. 7 for Porto and wears No. 14 for Colombia, he has been confirmed to be taking up the No. 23 shirt for his new club.
Carragher most famously wore the No. 23 throughout his senior career, inheriting it from Robbie Fowler, with Emre Can the next to wear it before Shaqiri’s arrival from Stoke in 2018.
Diaz made 125 appearances for Porto following his move from Junior de Barranquilla in 2019, scoring 41 goals and laying on 19.
Of those, 16 goals and six assists came in 28 appearances for the Portuguese side this season, with his stunning form in the Primeira Liga, as well as the Champions League, convincing Liverpool to make the swoop.
He is set to become the first-ever Colombian to play for the Reds, with compatriot Anderson Arroyo, the 22-year-old defender, spending his entire time on the books out on loan.
He is expected to join up with his new team-mates ahead of the FA Cup fourth-round tie against Cardiff next weekend, though it remains to be seen whether he will feature.